Question: QUESTION 5 . Given that R 1 and R 2 are random variables; w 1 and w 2 are constants. Which of the following expression

QUESTION 5.
Given that
R1 and R2 are random variables; w1 and w2 are constants.
Which of the following expression is equal to Var[i=12(wiRi)]?
You MUST provide a mathematical proof to justify your answer with the 8 basic
properties for statistical operators from Lecture #01.
A.,R1Var[w1]+R2Var[w2]+2R1R2Cov(w1,w2)
B.,w1Var[R1]+w2Var[R2]+2w1w2Cov(R1,R2)
C.,R12Var[w1]+R22Var[w2]+2R1R2Cov(w1,w2)
D.w12Var[R1]+w22Var[R2]+2w1w2Cov(R1,R2)
E. None of the above.
QUESTION 6.
Let x be the outcome of your first rolling of a dice (e.g.1,2,3,4,5,6).
Let Y be the outcome of your second rolling of a dice (e.g.1,2,3,4,5,6).
Let's define Z as (x+Y).
Calculate the probabilities for various possible outcomes of Z :
 QUESTION 5. Given that R1 and R2 are random variables; w1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!