00:02
Good day everyone.
00:04
So here, based on our answer for part a, we need to identify the marginal distribution of x.
00:13
So we have px is equals to 0, that's 0 plus 0 .3, is equals to 0 .3.
00:23
Px is equals to 10, that's 0 .7 plus 0, 0 .7.
00:31
Now for the y, we have py is equals to 0, 0 plus 0 .7, that's 0 .7.
00:44
P, where our y is equals to 10, that's 0 .3 plus 0, it's 0 .3.
00:57
We have ex, e of x is equals to 0 times 0 .3 plus 10 times 0 .7, which is equals to 7.
01:12
And ey is equals to 0 times 0 .7 plus 10 times 0 .3, which is equals to 3.
01:22
So we have the return of the portfolio.
01:24
So the return of portfolio, that is key.
01:38
So we have significance level x plus 1 minus significance level y...