---
title: "Recitation 6 Note"
author: "Yiming Gong"
date: "2021-08-03T02:47:09Z"
link: "https://bookdown.org/yg484/rec_6_note/"
length_weight: "2%"
pinned: false
---

This is the class note for recitation 6. [...] Recap: $$
w_1 = ,w_2 = \
w_1 + w_2 = 1\
E(K_V) = V \
E(K_V) = w_11 + w_22 \
Var(K_V) = ^2_V \
Var(w_1K_1 + w_2K_2) = Var(K_V) = w_12Var(K_1)+w2_2Var(K_2)+2w_1w_2Cov(K_1,K_2)\
Var(ax+by) = Var(ax) + Var(by) + 2Cov(ax, by) \
Var(x) = Cov(x,x) \
Var(ax+by) = Var(ax) + Var(by) + 2Cov(ax, by) \
=Cov(ax,ax)+Cov(by,by) + Cov(ax, by) + Cov(by,ax)\
Var({i=1}^n a_ix_i) = Cov({i=1}^na_ix_i, {i=1}^na_ix_i) $$ Compute the expected return μV and standard deviation \(\sigma_V\) of a portfolio
consisting of three securities with weights \(w_1 = 40\%\), \(w_2 = ...
