Chapter 9.1, Problem 24P

(a)

To determine

Identify whether the variables x and y are independent or not.

(b)

To determine

Estimate the expected percentage return ${\mu }_w$.

Estimate the risk ${\sigma }_w$.

(c)

To determine

Estimate the expected percentage return ${\mu }_w$.

Estimate the risk ${\sigma }_w$.

(d)

To determine

Identify the investment that has higher expected return.

Identify the greater risk as measured by ${\sigma }_w$.