Exercise 5 At the moment, the prices of the shares I and Il are e25 and e20, respectively. Let X be the price of share I next month and let Y be the price of share IlI next month. The joint probability density function of X and Y is as follows: h(x, y) 19 20 21 24 0.05 0.10 x 25 0.10 | 0.40 | 0.15 26 0.05 0.15 Table 1: Joint probability density function h(x.y) of X and Y. a) Determine P({X < 25}n{Y > 20}). b) Determine E(X | Y = 20). Without further computation you are allowed to use that E(X) = 25.05, E(Y) = 20.15, Ox = 0.5895 and Oy = 0.6538. c) Determine the correlation coefficient of X and Y. d) Suppose you invest e5000 in these two shares: half of this money, so e2500, is spent on share I and the other e2500 is spent on share II. There are no additional costs involved in this investment. Let U be the value of your invested money next month. Determine E(U).

Exercise 5 At the moment, the prices of the shares I and Il are e25 and e20, respectively. Let X be the price of share I next month and let Y be the price of share IlI next month. The joint probability density function of X and Y is as follows: h(x, y) 19 20 21 24 0.05 0.10 x 25 0.10 | 0.40 | 0.15 26 0.05 0.15 Table 1: Joint probability density function h(x.y) of X and Y. a) Determine P({X < 25}n{Y > 20}). b) Determine E(X | Y = 20). Without further computation you are allowed to use that E(X) = 25.05, E(Y) = 20.15, Ox = 0.5895 and Oy = 0.6538. c) Determine the correlation coefficient of X and Y. d) Suppose you invest e5000 in these two shares: half of this money, so e2500, is spent on share I and the other e2500 is spent on share II. There are no additional costs involved in this investment. Let U be the value of your invested money next month. Determine E(U).

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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