Question
Two investments X and Y give returns as follows (expectation and variance): E (X) = 0.6 and E (Y) = 0.5; V (X) = 1,
Two investments X and Y give returns as follows (expectation and variance): E (X) = 0.6 and E (Y) = 0.5; V (X) = 1, V (Y) = 2. The correlation between X and Y is (X, Y) = 0.5.
How can I find the expectation and variance of the "combined" investments U = X + Y, W = 2Y, and the correlation between U and W?
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Algebra
Authors: Marvin L Bittinger
12th Edition
0321922913, 9780321922915
