Question: significance. (6 marks) You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a GH1,000 investment in

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significance. (6 marks) You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a GH1,000 investment in each stock under four different economic conditions has the following probability distribution: Returns (GH) Stock Y P(X, Y) Economic Conditions Stock X -50 0.1 Recession -100 0.3 Slow growth 20 50 0.4 Moderate growth 100 130 0.2 Fast growth 150 200 Compute, with interpretation, the covariance between stock X and stock Y. Which stock is riskier? (8 marks)

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