Question 1 (Mean & Variance) Given two assets, we assume their daily returns are normally distributed. That is, X- N(0.0

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899559
Joined: Mon Aug 02, 2021 8:13 am

Question 1 (Mean & Variance) Given two assets, we assume their daily returns are normally distributed. That is, X- N(0.0

Post by answerhappygod »

Question 1 Mean Variance Given Two Assets We Assume Their Daily Returns Are Normally Distributed That Is X N 0 0 1
Question 1 Mean Variance Given Two Assets We Assume Their Daily Returns Are Normally Distributed That Is X N 0 0 1 (96.87 KiB) Viewed 143 times
Question 1 (Mean & Variance) Given two assets, we assume their daily returns are normally distributed. That is, X- N(0.0012,0.2), Y ~ N(0.0015, 0.18). Moreover, the covariance of the two returns is 0.1. Suppose you allocate 25% of your wealth to the first asset and 75% to the second one. (a)(2pts) What is the expected return of your portfolio? (b)(2pts) What is the variance of your portfolio?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”