Suffolk Investment Club has two funds: the fixed income fund and the variable income fund. Let...
Suffolk Investment Club has two funds: the fixed income fund and the variable income fund. Let X (Y) denote the annual return of the fixed income fund (the variable income fund). X fits a Normal distribution with mean 7% and standard deviation 2%, Y fits a Normal distribution with mean 13% and standard deviation 8%. Correlation between X and Y is -0.4. An ISOM 201 student has invested 30% of his money in the fixed income fund and the remaining 70% of his money in the variable income fund.
What is the standard deviation of the annual return of the student's investment portfolio in percentages? [up to one decimal in percentage]
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Suffolk Investment Club has two funds: the fixed income fund and
the variable income fund. Let...
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A pension fund manager is considering three mutual funds. The first is a stock fund, the...
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