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(15 points) Use the information in the table to calculate the covariance and correlation for the returns for Stock A and Stock B. State of
- (15 points) Use the information in the table to calculate the covariance and correlation for the returns for Stock A and Stock B.
State of Economy | Probability | Return for Stock A | Return for Stock B |
Growth | 1/3 | 30 | 3 |
Status Quo | 1/3 | 22 | 1 |
Recession | 1/3 | 20 | 4 |
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