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Consider the following information on two stocks: P ( State ) Stock A Stock B Boom 2 0 % 3 0 % 2 0 %

Consider the following information on two stocks:
P(State) Stock A Stock B
Boom 20%30%20%
Normal 50%12%-5%
Slow 15%4%8%
Recession 15%-10%10%
Calculate the covariance(A,B) and Calculate the correlation(A,B).

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