Question: below Return on asset 2 12% 14% 16% 20% Q.3 The returns of two assets under four possible states of nature are given State

טרןQ.3 The returns of two assets under four possible states of nature are given below:State of nature Probability Return on

below Return on asset 2 12% 14% 16% 20% Q.3 The returns of two assets under four possible states of nature are given State of nature Probability 0.40 0.10 0 20 Return on asset 1 -6% 18% 20% 0.30 25% Calculate the standard deviation of return on asset I and asset 2? What is the covariance and correlation between the returns on assets 1 and 2?

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