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Compute the covariance and the correlation for the following example: Three scenarios (1,2,3) with respective probabilities (20%, 30%, and 50%). Two stocks: Apple and GM.

Compute the covariance and the correlation for the following example:

  1. Three scenarios (1,2,3) with respective probabilities (20%, 30%, and 50%).
  2. Two stocks: Apple and GM.
  3. Apple's and GM's returns for the three scenarios are (5%,-5%,0%) and (3%,-4%,2%), respectively.

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