Question

Your simple stock portfolio consists of stock X and stock Y. 80% of your portfolio is...

Your simple stock portfolio consists of stock X and stock Y.
80% of your portfolio is made up of stock X and 20% is made up of stock Y.
The mean price of the stock X is $30 and the mean price of stock Y is $50.
The variance of stock X is 20 and the variance of stock Y is 10.
The covariance between them is 8.
Find the mean (expected value) and variance for the total value of the portfolio.

Math   Statistics-And-Probability   
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Answer #1

The given percentage of stock is used as a probabilty and based on that whole calculation is done.

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