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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