Question
How do you find Cov(X,M) and Cov(Y,M)? I know the following, in addition to the attached picture. Weight of X is 1/3 and Weight of
How do you find Cov(X,M) and Cov(Y,M)? I know the following, in addition to the attached picture.
Weight of X is 1/3 and Weight of Y is 2/3 and Corr(X,Y)=1/3
Therefore I know E(Return market)=0.17 and Variance of market return = 0.0081 and standard deviation of market return = 0.09
I know the answer is 0.0105 for X,M and is 0.0069 for Y,market but how do you find it.
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
