Question: 38. Consider the following two assets: State 0 = 1 = 2 = 3 Probability 1/3 1/3 1/3 TA(0) 10% -4% 3% TB (8)

38. Consider the following two assets: State 0 = 1 = 2 = 3 Probability 1/3 1/3 1/3 TA(0) 10% -4% 3% TB (8) -5% -4% 18% What is the expectation of A and FB? Variances? What is Cov(A, B)? What is PAB?

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