Question: Based on the following information, calculate the expected return and correlation for the two stocks: State of Economy Probability of State of Economy Rate of

Based on the following information, calculate the expected return and correlation

Based on the following information, calculate the expected return and correlation for the two stocks: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .20 4% -8% Normal .60 8% 18% Boom .20 12% 28%

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