Question: Probability A B ------------------------------------------------------------------------ 0.53 13% 22% 0.47 28% 10% ------------------------------------------------------------------------ We will invest 40% of your initial investment in Stock A, 60% in Stock

Probability A B

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0.53 13% 22%

0.47 28% 10%

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We will invest 40% of your initial investment in Stock A, 60% in Stock B.

  1. What is the co-variance between Stock A and Stock B?
  2. What is the correlation coefficient between Stock A and Stock B?

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