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An analyst developed two scenarios with respect to the recovery of $100,000 principal from defaulted loans is: 5. Probability of Scenario (%) Amount Recovered (S)

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An analyst developed two scenarios with respect to the recovery of $100,000 principal from defaulted loans is: 5. Probability of Scenario (%) Amount Recovered (S) Probability of Amount (%) Scenario 50,000 30,0004cenario 60,000 40 90Scenario 60 What is the amount of the expected recovery? Calculate the covariance of the returns on Bedolf Corporation (Re) with the returns on Zedock Corporation (R.), using the following data. 6. Probability Function of Bedolf and Zedock Returns R.-3096 R, 15% R.-10% Rz-15% 0.25 0 0 R.-1096 0 0.50 0 Rz-5% 0 0 0.25

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