Question: Can you please solve for covariance and correlation between the two stocks? Based on the following information: State of Economy Probability of State of Economy

Can you please solve for covariance and correlation between the two stocks?

Based on the following information:

State of Economy Probability of State of Economy Return on Stock J Return on Stock K
Bear .28 .023 .031
Normal .63 .135 .059
Bull .09 .215 .089

a.

Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)
d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)

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