The stock prices of two companies at the end of any given year are modeled with random variables X and Y that follow a distribution with joint density function
What is the conditional variance of Y given that X = x ?
- 1/12 Correct Answer
- x + 1/2
- x2 – 1/6
- x2 + x + 1/3
Let f1(x) denote the marginal density function of X. Then