Question: Based on the following information, calculate the expected return and standard deviation of each of the following stock. Assume each state of the economy is

Based on the following information, calculate the expected return and standard deviation of each of the following stock. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks? State Probability Stock A Stock B Bear 0.3333 0.082 -0.065 Normal 0.3333 0.095 0.124 Bull 0.3333 0.063 0.185

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