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Consider the following two risky asset world. Suppose financial analysts believe that there are three equally likely state of the economy : recession, normal and

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Consider the following two risky asset world. Suppose financial analysts believe that there are three equally likely state of the economy : recession, normal and boom. The returns on stock fund and bond fund are as follows: - Find the expected return on Stock fund and expected return on bond fund. - Find variance on stock fund and bond fund - Find covariance. - Find correlation

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