Problem 9

The price of these two stocks (X and Y) has the following joint probability distribution:

		Stock X
		8	6
	3	0.10	0.30
	2	0.25	0.35

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Stock Y

Find the expected value of the price of stock Y: 

 A. 2.20 B. 2.40 C. 2.60 D. 5.70 E. 6.70 

Problem 10

Calculate the covariance between the prices of X and Y:

 A. 0.06 B. 0.08 C. 0.00 D. -0.06 E. -0.08 

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