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1. Compute the covariance and the correlation for the following example: 1. Three scenarios (1,2,3) with respective probabilities (20%,30%, and 50%). 2. Two stocks: Apple
1. Compute the covariance and the correlation for the following example: 1. Three scenarios (1,2,3) with respective probabilities (20%,30%, and 50%). 2. Two stocks: Apple and GM. 3. Apple's and GM's returns for the three scenarios are (5%,5%,0%) and (3%,4%,2%), respectively
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