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4. Based on the following information, calculate the expected return and standard deviation for each stock. What are the covariance and correlation between the returns

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4. Based on the following information, calculate the expected return and standard deviation for each stock. What are the covariance and correlation between the returns of the two stocks? (20 points) STATE OF PROBABILITY OF RETURN ON RETURN ON ECONOMY STATE OF ECONOMY STOCKJ STOCKK Recession .15 .01 -.19 Normal .50 .09 .11 Boom .35 .13 .37

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