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8. Fauji Fertilizer Company and Fatima Fertilizer Company have the following joint probability distribution of returns for next year: State Probability Return. Fauji %
8. Fauji Fertilizer Company and Fatima Fertilizer Company have the following joint probability distribution of returns for next year: State Probability Return. Fauji % Return. Fatima % Boom .1 14 20 Recession .2 -5 -2 Normal .4 10 9 Recovery .1 9 12 14 18 Slow growth .2 a. Calculate the expected return of Fauji Fertilizer Company and Fatima Fertilizer Company. b. Calculate the standard deviation Fauji Fertilizer Company and Fatima Fertilizer Company. Calculate the covariance and correlation between Fauji Fertilizer Company and Fatima Fertilizer Company. C.
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