# Rocession 9 5. Use the following information to answer the question assuming the equal probability o

Rocession 9 5. Use the following information to answer the question assuming the equal probability of each scenario: Security 1(%) Security 2(%) 13 Normal 13 10 Boom 26 -2 E(R)-10%; E(R.) 7%; 0, -14.45%; 0, 6.48%; a) Calculate Covariance between Security 1 and Security 2. (6 points) b) Calculate Correlation between Security I and Security 2. (3 points) e) Calculate expected portfolio rate of return investing 60% of the wealth in Security I and the remaining in Security 2. (3 points) d) Calculate standard deviation of portfolio investing 60% of the wealth in Security the remaining in Security 2. (5 points) and