← All problems

428.Minimum-Variance Blend

★★
correlationCh. 6 — Random Variables and Expectation444+ Problems in Probability
Let X1X_1 and X2X_2 be independent with variances 25 and 100. Find the c[0,1]c \in [0,1] minimizing the variance of Y=cX1+(1c)X2Y = cX_1 + (1-c)X_2.

Sign in to submit an answer and track it toward your stats.

Sign in

Want timed drills, mental math, and a market-making game too? Try the full practice suite →