Question: 3. [10 pts.] You've been tasked with evaluating the risk of a new trading strategy being incorporated by the quant shop that you work for.

3. [10 pts.] You've been tasked with evaluating the risk of

3. [10 pts.] You've been tasked with evaluating the risk of a new trading strategy being incorporated by the quant shop that you work for. Based on a lot of simulations, you've determined that the following scenarios are possible: Prob(scenario) Return of Investment A Return of Investment B 10% -10% -8% 20% 0% 4% 30% 12% 0% 20% 10% -4% 20% 20% 20% 3a. Compute the correlation between the two investments

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