Suppose that the two return random variables R1 and R2 in
Chapter 4, Problem 12(choose chapter or problem)
Suppose that the two return random variables R1 and R2 in Examples 4.2.2 and 4.2.3 are independent. Consider the portfolio at the end of Example 4.2.3 with s1 = 54 shares of the first stock and s2 = 110 shares of the second stock. a. Prove that the change in value X of the portfolio has the p.d.f. f (x) = 3.87 107(x + 1035) if 1035
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