document.write( "Question 663558: The following table describes the asset allocation of your portfolio with the corresponding return in percentage, X, and the proportion of that specific asset in the portfolio, P(X).\r
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\n" ); document.write( "\n" ); document.write( "Money Market: X=10% , P(X)=.10
\n" ); document.write( "Short Term Securities: X=15% , P(X)=.10
\n" ); document.write( "Long Term Debt: X=25% , P(X)=.20
\n" ); document.write( "Large Cap Equity: X=25% , P(X)=.35
\n" ); document.write( "Small Cap Equity: X=15% , P(X)=.15
\n" ); document.write( "International Equity: X=10% , P(X)=.10\r
\n" ); document.write( "\n" ); document.write( "Calculate the E(X) for this portfolio.\r
\n" ); document.write( "\n" ); document.write( "Calculate the E{ [X-E(X)] 2} for this portfolio.\r
\n" ); document.write( "\n" ); document.write( "<< This is just one sample problem for my homework. I cannot seem to understand the process to answering these questions. Please show all formulas and calculations so that I can learn from this >>
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Algebra.Com's Answer #412841 by stanbon(75887)\"\" \"About 
You can put this solution on YOUR website!
Money Market: X=10% , P(X)=.10
\n" ); document.write( "Short Term Securities: X=15% , P(X)=.10
\n" ); document.write( "Long Term Debt: X=25% , P(X)=.20
\n" ); document.write( "Large Cap Equity: X=25% , P(X)=.35
\n" ); document.write( "Small Cap Equity: X=15% , P(X)=.15
\n" ); document.write( "International Equity: X=10% , P(X)=.10
\n" ); document.write( "Calculate the E(X) for this portfolio.
\n" ); document.write( "Procedure: Multiply each x value by its P(x) value
\n" ); document.write( "then add those products to get E(x)
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\n" ); document.write( "Calculate the E{ [X-E(X)] 2} for this portfolio.
\n" ); document.write( "Multiply each (x-E(x))^2 by its P(x)
\n" ); document.write( "then add those products to get E[x-E(x))^2]
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\n" ); document.write( "cheers,
\n" ); document.write( "Stan H.
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