mont4e_sm_ch05_mind

Mind expanding exercises 5 94 by the independence p x

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Unformatted text preview: curities has a lower standard deviation of percentage return than investing 2million in the first security. Mind-Expanding Exercises 5-94 By the independence, P( X 1 ∈ A1 , X 2 ∈ A2 ,..., X p ∈ A p ) = ∫ ∫ ... ∫ A1 A2 f X 1 ( x1 ) f X 2 ( x 2 )... f X p ( x p )dx1 dx 2 ...dx p Ap ⎤ ⎡ ⎤⎡ ⎤⎡ = ⎢ ∫ f X 1 ( x1 )dx1 ⎥ ⎢ ∫ f X 2 ( x 2 )dx 2 ⎥...⎢ ∫ f X p ( x p )dx p ⎥ ⎥ ⎢ A1 ⎥ ⎢ A2 ⎥ ⎢ Ap ⎣ ⎦⎣ ⎦⎣ ⎦ = P( X 1 ∈ A1 ) P( X 2 ∈ A2 )...P( X p ∈ A p ) 5-95 E...
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