Probability: Expected Value, Variance, Covariance & a Two-Asset Portfolio
This lesson is part of the course
In this lesson
You weight scenario returns by their probabilities to get expected return, standard deviation, covariance and correlation, then the risk of a 60/40 portfolio.
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Lessons in this course
- Uneven Cash Flows: NPV, IRR, Money- vs Time-Weighted Return Locked
- Annuities & Perpetuities: Ordinary vs Due, Deferred & Growing Locked
- Describing Returns: Mean, Median, Geometric Mean, Skew & Kurtosis Locked
- Probability: Expected Value, Variance, Covariance & a Two-Asset Portfolio Locked
- Binomial & Normal Distributions, z-Scores and Safety-First Locked
- Sampling & Confidence Intervals with the t-Distribution Locked
- Hypothesis Testing: t-Test of a Mean, p-Value & Decision Locked
- Simple Linear Regression: Beta, R², SEE & the t-Test of the Slope (Chart) Locked