Q.3 The returns of two assets under four possible states of nature are given below: State of nature Probability Return on asset I Return on asset 2 0.40 1-6% 2 0.10 18% 14% 3 020 20% 16% 0.30 2,590 20% Calculate the standard deviation of return on asset 1 and asset 22 What is the covariance and correlation between the returns on assets 1 and 2