You are given the following information: State of Economy Returnon Stock A Return on Stock B Bear 0.103 -0.046 Normal 0.114 0.149Bull 0.074 0.234 Assume each state of the economy is equally likelyto happen. a. Calculate the expected return of each stock. (Do notround intermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.) b. Calculate thestandard deviation of each stock. (Do not round intermediatecalculations and enter your answers as a percent rounded to 2decimal places, e.g., 32.16.) c. What is the covariance between thereturns of the two stocks? (A negative answer should be indicatedby a minus sign, Do not round intermediate calculations and roundyour answer to 6 decimal places, e.g., .161616.) d. What is thecorrelation between the returns of the two stocks? (A negativeanswer should be indicated by a minus sign, Do not roundintermediate calculations and round your answer to 4 decimalplaces, e.g., .1616.)
