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 Stock A

Return on Stock B

1

20.00%

26.00%

9.00%

2

30.00%

18.00%

15.00%

3

50.00%

10.00%

30.00%

If you invest 10,000 in stock A and 15,000 in stock B what would be your portfolio return and risk. Use information from question 2 if necessary. Please show work for all

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