1.Manuel thinks the world can be described by four possible outcomes (probability): recession (40%), recovery (30%), expansion (20%), exuberance (10%). He has two stocks in his portfolio, WMGMT and...

1.Manuel thinks the world can be described by four possible outcomes (probability): recession (40%), recovery (30%), expansion (20%), exuberance (10%). He has two stocks in his portfolio, WMGMT and ARPLE, that have forecast returns of 11% WMGMT (5% ARPLE), 22% (10%), 33% (5%), and -11% (10%) in each of the four states, respectively. Compute the standard deviation of returns for WMGMT2.Manuel thinks the world can be described by four possible outcomes (probability): recession (40%), recovery (30%), expansion (20%), exuberance (10%). He has two stocks in his portfolio, WMGMT and ARPLE, that have forecast returns of 11% WMGMT (5% ARPLE), 22% (10%), 33% (5%), and -11% (10%) in each of the four states, respectively. Compute the correlation of returns for WMGMT and ARPLE