A= 1 only

B= 2& 3 only

C = All 3

D= 1& 2 only

Based on the outcomes in the following table, choose which of the statements below is (are) correct? Scenario Recession Normal Boom Security A Return > Er) Return = E(r) Return Er) 1. The covariance of security A and security B is zero. II. The correlation coefficient between securities A and C is negative. III. The correlation coefficient between securities B and C is positive