Question: Continuing Example 5.4, assume the same specifications as that example, except that now we no longer assume that the random variables X and Y are

Continuing Example 5.4, assume the same specifications as that example, except that now we no longer assume that the random variables X and Y are independent of one another. Denote by C the covariance between these random variables. Show now that the variance of total return is Var(R)-(2a -2,000+ 1.000.000) + 2(1.000 - a)C Show that the choice of a 500 is less risky than the choice of a = 0, provided C

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