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Assume that an economy can have four states: Severe recession, Mild recession, Normal growth, Boom. Probability of each scenario, stock and bond annual returns in

image text in transcribed Assume that an economy can have four states: Severe recession, Mild recession, Normal growth, Boom. Probability of each scenario, stock and bond annual returns in that scenario are provided below. Let's also assume that you are creating a portfolio with 65% stocks and 35% bonds. How much is the correlaton between Stock and Bond annual returns? Enter your answer in the following format: + or -0.1234 Hint: Answer is between 0.2678 and 0.3207

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