Question: Compute the covariance and the correlation for the following example: 1. Three scenarios (1,2,3) with respective probabilities (20%, 30%, and 50%). 2. Two stocks: Apple

Compute the covariance and the correlation for the following example:

1. Three scenarios (1,2,3) with respective probabilities (20%, 30%, and 50%).

2. Two stocks: Apple and GM.

3. Apple's and GM's returns for the three scenarios are (5%,-5%,0%) and (3%,-4%,2%), respectively.

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