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STATISTICS 2ND QUIZ - Coggle Diagram
STATISTICS 2ND QUIZ
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Expected value, variance,covariance for DRV
E(aX+b)=a⋅E(X)+b
E(X+Y)=E(X)+E(Y)
E(X⋅Y)=E(X)⋅E(Y) ; x,y indep
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Cov(X,Y)=E(X⋅Y)-E(X)⋅E(Y)
x,y ind-> Cov(X,Y)= 0
σ(x+y)²=σx²+σy²+2cov(x,y)
portfolio=(w,1-w) E(P)=w⋅E(X)+(1-w)⋅E(Y)
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