Question: based on the following chart answer the questions for 10b, please provide step by step Probability Stock D Return Stock E Return State of the

Probability Stock D Return Stock E Return State of the Economy Expansion 20% 26% 40% Normal 60 18 18 Recession 20 10 -4 Convert to SmartArt Paragraph Arrange Old Shape Outline Shape Effects Replace Select Editing Dictate Drawing Voice #10b What is the covariance of returns between stocks D and E? What is their correlation coefficient? What diversification benefits would be derived from holding these two stocks in a portfolio
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