Typo in FRM 2014 Literature (Ch2 Basic Statistics)

[BongoBolognese]

The book states that from the linearity of the expectation operator the following follows:

E[cX] + cE[X]

It should be:

E[cX] = cE[X]

right?

 

[David Harper CFA FRM]

Hi @BongoBolognese

Yes, you are correct. See http://en.wikipedia.org/wiki/Expected_value#Properties

But can you tell us where exactly you find this error, I cannot find it?
cc @Nicole Manley (Bongo should get a star if this typo is in our material)

 

[BongoBolognese]

The typo is in the miller book. FRM 2014 Quantitative Analysis - Fourth edition, p17.

 

[David Harper CFA FRM]

@BongoBolognese

Here is what I have in the 2nd edition of Miller (kindle version); it looks correct in my source:

source: www.amazon.com/Mathematics-Statistics-Financial-Risk-Management/dp/1118750292/

 

[Nicole Seaman]

Hi @BongoBolognese

Yes, you are correct. See http://en.wikipedia.org/wiki/Expected_value#Properties

But can you tell us where exactly you find this error, I cannot find it?
cc @Nicole Manley (Bongo should get a star if this typo is in our material)

@David Harper CFA FRM CIPM FYI I do not see this error in our notes, but that would make sense if we are using the 2nd edition (where it is shown correctly) and he has found the error in the 4th edition.

Thanks,

Nicole

 

[David Harper CFA FRM]

@Nicole Manley thanks, but Miller doesn't have a 4th edition to my knowledge. Just first and second ....