00:01
Hello student, two bond reduce the overall risk of investment portfolio that x with a random variable, annual percent return.
00:17
Now x with a random variable annual percent return and y with a random variable is annual return.
00:29
Now we have to compute the summation x, summation x square, summation y, summation y, summation y square and also mean variance and standard deviation.
00:44
So first we sum the x variable which is equals to 1126.
00:51
Now we sum the y variable which is equals to 55.
00:58
5.
00:59
Now summation of x square which is equals to 392.
01:07
So summation of x square is equal to 392.
01:11
6 .3 .8 and summation of y square is equal to 1 to 289.
01:24
Now for x we calculate mean and variance.
01:31
So x bar is equal to summation x i divided by n here summation x i is equals to 1126 divided by 8 which is equal to 14t 0 .75.
01:49
Now variance is equal to s square which is equal to 1 upon n minus 1 summation i running from 1 to 1 to xx5.
02:05
X i minus x bar bracket square which is equal to 33449 which is equal to 33 449...