Show That Var(X + Y)= Var(X)+ Var(Y)

question 254

Essay

Show that Var(X + Y)= Var(X)+ Var(Y).Did you expect this result? Why?

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Definitions:

Paid-In Capital

Funds raised by a company from equity, and not from ongoing operations, reflected on the balance sheet.

Treasury Stock

Shares that were once outstanding and have been bought back by the issuing company, reducing the amount of stock on the open market.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its financial position.