Question: Consider the random variables: X = the first year rate of return ( % ) expected from project A , and Y = the first

Consider the random variables:
X = the first year rate of return(%) expected from project A, and
Y = the first year rate of return(%) expected from project B.
The table below gives the joint probability function (,)P(x,y):
YX1020100.110.0800.090.05200.070.27300.120.21XY1002030100.110.090.070.12200.080.050.270.21
Answer the following questions, rounding your answers to two decimal places where appropriate.
(a) Find the marginal probability function of Y . In particular, find
i.(10)=(=10)PY(10)=P(Y=10)
ii.(20)=(=20)PY(20)=P(Y=20)
(b) Find the probability that the return from project B is 20 percent given that the return from project A is 20 percent.
(c) What is the expected rate of return from project A,()E(X)?
(d) What is the expected rate of return from project B,()E(Y)?
(e) What is the covariance between X and Y ?

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