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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

  1. (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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