Question: 5.7 Given two random variables x and y : (a) Calculate the mean and variance of each of these variables, and the covariance between them.

5.7 Given two random variables x and y : (a) Calculate the mean and variance of each of these variables, and the covariance between them. (b) Suppose x and y represent the retums from two assets. Calculate the mean and variance for the following portfolios: (c) Find the portfolio that has the minimum variance. (d) Let portfolio A have 75% in x and portfolio B have 25% in x. Calculate the covariance between the two portfolios. (e) Calculate the covariance between the minimum variance portfolio and portfolio A, and the covariance between the minimum variance portfolio and portfolio B

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