Question: Given the returns and probabilities for the three possible states listed here, calculate the Covariance and Correlation Coefficient between the returns of share holdings in

Given the returns and probabilities for the three possible states listed here, calculate the Covariance and Correlation Coefficient between the returns of share holdings in an Australian Real Estate Investment Trust (AREIT) and shareholdings in Gold.

Given the returns and probabilities for the three possible states listed here,

Probability Return (Gold) 0.20 Good Okay Poor Return (AREIT) 10.80% 5.40% 0.00% 0.50 0.00% 0.35% 1.05% 0.30

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