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Problem #4: (10pts) Show that for a discrete uniform random variable X, if each of the values in the range of X is multiplied
Problem #4: (10pts) Show that for a discrete uniform random variable X, if each of the values in the range of X is multiplied by the constant c, the effect is to multiply the mean of X by c and the variance of X by c. That is, show that: E[CX] = CE[X] and Var[CX] = cVar[X]
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
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