Question 3: (10 marks) A market contains two stocks. Tomorrow, the state of the market could be Superb, Good, Bad or Ugly and this will affect the returns of the stocks - denoted by R1 and R2 - as shown in the table below. (Note: The minus sign when market is Ugly) Based on this information. a) Write down the Joint Distribution of R1 and R2 b) Calculate (R1,R2) - the correlation of R1 and R2 (3 marks) (7 marks) You need to clearly show all steps in your calculation and the relevant formulas you are using