Question
Two investments X and Y gives 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 (
Two investments X and Y gives 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
a) Find the expectation and variance for the "combined" investments
U=X+Y,W=2Y.
b) find the correlation between U and W: First find V(U+W)
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A First Course In Discrete Mathematics
Authors: John C Molluzzo, Fred Buckley
1st Edition
1478634383, 9781478634386
