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Unformatted text preview: SD(X) i.e. Var(aX)=a2 Var (X). • Formula V3: Var(aX + bY + c) = a2Var(X) + b2Var(Y) + 2abCov(X,Y) COVARIANCE FORMULAE Formula C1: Cov(X,Y)=Cov(Y,X) Formula C2: Cov(aX, bY) = ab Cov(X,Y) Formula C4: Cov(X,X)=Var(X) Formula C5: 1. Independence implies Correlation 0. Cov(X+c, Y) = Cov(X,Y) Formula C3: NOTES:- Cov(X,Y)=SD(X) × SD(Y) × Corr(X,Y) Formu...
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This note was uploaded on 01/15/2014 for the course BUAD 310 taught by Professor Lv during the Fall '07 term at USC.

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