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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
Normal
Bull
a
Calculate the expected return for each of the stocks. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b Calculate the standard deviation for each of the stocks. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
c What is the covariance between the returns of the two stocks? Do not round intermediate calculations and round your answer to decimal places, eg
d What is the correlation between the returns of the two stocks? Do not round intermediate calculations and round your answer to decimal places, eg
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