Question: Using the following information find expected return, variance and standard deviation of stock A and B. Also find the covariance and correlation between Stock A

Using the following information find expected return, variance and standard deviation of stock A and B. Also find the covariance and correlation between Stock A and B.

States

Probability

Return on StockA

Return on StockB

1

20.00%

26.00%

9.00%

2

30.00%

18.00%

15.00%

3

50.00%

10.00%

30.00%

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