For M, the covariance between H and I was computed as 45 in Formula 8 9 The variance of H is 90 (from Table 8 4 on page 232), the variance of I is 189 (from the same figure) Therefore, using the shor...

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For M, the covariance between H and I was computed as 45 in Formula 8 9 The variance of H is 90 (from Table 8 4 on page 232), the variance of I is 189 (from the same figure) Therefore, using the shortcut Formula 8 10, Var(rM) (2 3)2 90 (1 3)2 189 2 (2 3) (1 3) 45 81 ...

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For M, the covariance between H and I was computed as 45%% in Formula 8.9. The variance

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Corporate Finance An Introduction