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Suppose that you are planning an investment in three different companies. The payoff per unit you invest in each company is represented by a random
- Suppose that you are planning an investment in three different companies. The payoff per unit you invest in each company is represented by a random variable.Arepresents the payoff per unit invested in the first company,Bin the second, andCin the third.A,B, andCare independent of each other. Furthermore,var(A) = 2var(B) = 3var(C). You plan to invest a total of one unit in all three companies. You will invest amountain the first company,bin the second, andcin the third, wherea,b,c[0,1] anda+b+c= 1. Find, the values ofa,b, andcthat minimize the variance of your total payoff.
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