Two assets are available for
Two assets are available for investment.
Asset 1 returns (4x)%, where X - Binomial (3,0.5.)
Asset 2 returns (2Y)%, where Y - Poisson (3)
A benchmark return of 3% is required.
Calculate:
-expected return
-variance of return
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two assets are available for investmentasset 1 returns 4x where x - binomial 305asset 2 returns 2y where y - poisson 3a
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