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Problem:

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.

Note: Explain all steps comprehensively.

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%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91149177

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