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Based on the different states of the economy below, calculate mean, standard deviation, and variance for both stocks. In addition, calculate the covariance and correlation
Based on the different states of the economy below, calculate mean, standard deviation, and variance for both stocks. In addition, calculate the covariance and correlation between the two stocks.
| state of the economy | probability | CSCO stock | MSFT stock |
|---|---|---|---|
| 1 | 10% | 7% | 5% |
| 2 | 25% | 13% | 12% |
| 3 | 20% | 14% | 16% |
| 4 | 30% | 22% | 19% |
| 5 | 15% | -26% | -20% |
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