SOLUTION: a. The following table gives the joint probability distribution of the random
variables X and Y , where X is the first - year rate of return expected
from investment A while Y
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-> SOLUTION: a. The following table gives the joint probability distribution of the random
variables X and Y , where X is the first - year rate of return expected
from investment A while Y
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Question 1198098: a. The following table gives the joint probability distribution of the random
variables X and Y , where X is the first - year rate of return expected
from investment A while Y is the first - year rate of return expected from
investment B.
Table 5: Rates of Return on Two Investments
Y(%) X(%)
-10 0 20 30
20 0.27 0.08 0.16 0.00
50 0.00 0.04 0.10 0.35
i. Calculate the expected rate of return from investment B.
ii. Find the conditional expectation of Y , given X = 20.
You can put this solution on YOUR website! Values difficult to distinguish.
If You were to enter them in Excel Columns, copy paste would work.
Please repost.
