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You are given the following information: Probability of State of Economy Return on Return on State of Stock J Stock K Economy Bear .28

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You are given the following information: Probability of State of Economy Return on Return on State of Stock J Stock K Economy Bear .28 -.023 .031 Normal .63 .135 .059 Bull .09 .215 .089 a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .321616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .3216.)

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