Solved: The returns of shares a and b for the coming period are, Basic Statistics

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The returns of shares a and b for the coming period are

Question: The returns of shares A and B for the coming period are represented by the following joint probability distribution:

(a) Compute the expected value, the variance, and the standard deviation of returns provided by investing in share B.

(b) Compute cov(r¯_A, r¯_B) and ρ_AB· Briefly interpret your findings.

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Basic Statistics: The returns of shares a and b for the coming period are

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Basic Statistics: The returns of shares a and b for the coming period are

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