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Based on the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear . 2 0

Based on the following information:
State of Economy Probability of State of Economy Return on Stock J Return on Stock K
Bear .20.030.024
Normal .55.128.052
Bull .25.208.082
a.
Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g.,.161616.)
d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g.,.1616.)

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