Based on the following information, calculate the expected return and standard deviation for each of the following

Question:

Based on the following information, calculate the expected return and standard deviation for each of the following stocks. What are the covariance and correlation between the returns of the two stocks?

Return Return Probability on on State of of State of Stock Stock Economy Economy J K Bear .30 -.050 .029 Normal .55 .118 .074 Bull .15 .274 .098

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...

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