What are the covariance and correlation

Reference no: EM13299275

Base on the following information; calculate the expected return and standard deviation of each of the stocks. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks?

State of Economy Return on stock A Return on Stock B
Bear .082 -.065

Normal .095 .124

Bull .063 .185

Reference no: EM13299275

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