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You are given the following information State of Economy Return on Stock A Return on Stock B Bear .073 .094 Normal .134 .142 Bull .062

You are given the following information

State of Economy Return on Stock A Return on Stock B
Bear .073 .094
Normal .134 .142
Bull .062 .321
Assume each state of the economy is equally likely to happen.

1)What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)

2)What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)

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