STAB52H3 Study Guide - Quiz Guide: S&P 500 Index, Random Variable
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Show that cov(x, y + z) = cov(x, y ) + cov(x, z). Show that cov(ax, by ) = abcov(x, y ). Suppose that x is a random variable with possible values 0, 1 and 2. Find a formula for p (x = k) in terms of ex and e(x 2) for k = 0, 1, 2. Suppose x poisson( ) ie px(k) = e k/k! for k = 0, 1, 2, . The aggregate bond index is an index designed to measure the performance and/or value of bonds. The s&p 500 index is an index designed to measure the performance and/or value of u. s. equities. From chart 3 note that fully 93 percent of the daily correlation ticks were negative. Explain what this describes about the relationship between the value of aggregate bonds and the value of the s&p 500. Prove that for a random variable x with possible values {0, 1, 2, .
