What is the correlation between stock N and the index if their standard deviations are 7.746% and 4.074%, respectively? (The expected returns of both stocks is 10%.) Covariance Calculation Worksheet (1) (2) (3) (4) (5) (6) (7) State of Nature Prob. kn km Kn - E(kn) Km - E(km) (2)x(5)x(6) 0.3 0% 5% 2 0.2 10% 12% 3 0.2 10% 8% 4 0.3 20% 15% SUM 1. 0 2. 0.5 3. 0.75 4. 0.95 5. 1