$7.$

State of Probability Security Returns X Security Returns Market

the world

Boom $0\mathrm{.}30\mathrm{.}250\mathrm{.}15$

Normal $0\mathrm{.}40\mathrm{.}070\mathrm{.}1$

Recession $0\mathrm{.}30\mathrm{.}030\mathrm{.}05$

E$($Rx$)\mathrm{.}112$ E$($RMkt$)\mathrm{.}100$

$0\mathrm{.}008436=\mathrm{.}0015$

$$ Is this distribution symmetrical?

$$ Calculate the covariance.

$$ Calculate the variance of the portfolio made up of $40\%$ X and $60\%$ of the Market.

$$ Find the Beta for the firm.

$$ Find the correlation coefficient.

$$ What does beta measure?