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table [ [ State , Probability, R ? ? ( A ) State 1 2 3 4 Probability 0.1 0.2 0.5 0.2 7% 8%

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State 1 2 3 4 Probability 0.1 0.2 0.5 0.2 7% 8% 90/0 5% 90/0 6% 90/0 Find the covariance and the correlation coefficient between the returns of A and B. Covariance (GAB): measures how two random variables move together, or lack thereof. Correlation Coefficient (PAB):

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