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Question: Assume that Charlotte has two stocks: Disney (D) and Amazon (A). For each of these stocks, the possible percent returns are {0%, 5%, 10%, 15%}. The joint probability of P(d, a) = 0.0625 for all values of D and A.
(a) Construct a Table with joint probabilities.
(b) Find the marginal probabilities.
(c) Are Disney and Amazon stock returns independent?
(d) What is the mean and variance of the stocks D and A?
(e) What is the covariance between A and D?
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