Fin410FormulaSheet

E[z] aE[x] bE[y]

E[r ] s 1 p ( s )r ( s )

Var (r )
s 1

ave

2
(ri r ) 2 .

n 1 i

2
p ( s )(r ( s ) E[r ]) 2

ave

E[r ]

p(s)r (s)dr