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Use the following information for theproblem. ____________________________________________________ State of Probabilityof Returns if State Occurs Economy State ofEconomy StockS Stock T____________________________________________________ Boom 0.10 12% 4% Normal 0.65 9% 6% Recession 0.25 2% 9% ____________________________________________________ a) Find the expectedreturn of each stock.Use at least seven decimal places incomputations of (b), (c) and (d) below to avoid significantrounding errors. b)Calculate the variance and standard deviation of returns of eachstock. c) Compute the covariance and correlation of returnsbetween the two stocks. d) Assume that you invest $4,500 in Stock S and $3,000in Stock T. Find the expected return on the portfolio and thestandard deviation of the portfolio’s return.