The profits of two benefits under four conceivable conditions of nature are given beneath :
Condition of nature Probability Return on resource 1 Return on resource 2
1 0.40 -6% 12%
2 0.10 18% 14%
3 0.20 20% 16%
4 0.30 25% 20%
a. What is the standard deviation of the arrival on resource 1 and on resource 2?
b. What is the covariance between the profits on resources 1 and 2?
c. What is the coefficient of relationship between the profits on resources 1 and 2?