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2.Based on the following information, calculate the expected return, standard deviation, covariance, and correlation for the two stocks. State of Economy Probability Stock A Stock

2.Based on the following information, calculate the expected return, standard deviation, covariance, and correlation for the two stocks.

State of Economy

Probability

Stock A

Stock B

Boom

15%

30%

35%

Normal

65%

20%

40%

Bust

20%

15%

-15%

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