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You have investments in assets A and B. You have equal chances of earning either 24% or 12% or 6% on A and either 1%
You have investments in assets A and B. You have equal chances of earning either 24% or 12% or 6% on A and either 1% or 9% or -6% on B under three different economic situations.
Calculate: i) expected return and variance of the expected return for A and B
ii) Covariance of the expected returns of A and B.
Note: Use excel shorcuts and share formulae
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