Question: Based on the following information calculate Standard Deviation and Correlation of two assets. State of Economy Probability Stock A Stock B Recession 20% 20% 10%

  1. Based on the following information calculate Standard Deviation and Correlation of two assets.

State of Economy

Probability

Stock A

Stock B

Recession

20%

20%

10%

Normal

50%

25%

15%

Boom

30%

30%

20%

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