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1. For the following two stocks X and Y, the probability for each event is the same (33.33% each) X Y 0% 5% 2% 4%

1. For the following two stocks X and Y, the probability for each event is the same (33.33% each)

X Y

0% 5%

2% 4%

6% 2%

a. Compute the expected return and the standard deviation for stock X and Y.

b. What is the covariance between X and Y?

c. What is the correlation coefficient between X and Y?

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