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A broker has calculated the expected values of two different financial instruments X and Y. Suppose that E(X) = $115, E(Y) = $99, SD(X) = $12 and SD(Y) = $8. Find each of the following.
a. E(X+10) and SD(X+10)
b. E(5Y) and SD(5Y)
c. E(X+Y) and SD(X+Y)
d. What assumptions must you make in part c?
a) Find E(X+10) and Sd(X+10)