Question
Show that cov(X, Y)' < in the case where Var(X) O. Hints: Start with Cov(aX - W, ax - W ) = Var(aX -
Show that cov(X, Y)' < in the case where Var(X) O. Hints: Start with Cov(aX - W, ax - W ) = Var(aX - bY) > O. Expand the left-hand side with Theorem 5.4(b). Then substitute a = cov(X , Y) and b Var(X).
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
