Question

The returns of two assets under four possible states of economy are given below:
State of Economy Probability Return on Asset I Return on Asset 2
1
0.20
-590
10CC
2
0.30
12
3
0.40
1860
1490
1890
i) Find the standard deviation of the return on asset l and asset 2.
ii) Find the covariance between the retums on assets 1 and asset 2.
iii) Find the coefficient of correlation between the returns on both the assets.​

Answer 1

Answer:

$❥\huge\red{\underline{{\bf G}}}\huge\orange{\underline{{\bf O}}}\huge\green{\underline{{\bf O}}}\huge\blue{\underline{{\bf D}}}\huge\purple{\underline{{\bf EVENING}}}$