(Answered) You are given the following informationstate of

Finance

You are given the following information:

State of EconomyReturn on Stock AReturn on Stock B

Bear .117 -0.60

.100 .100 .163

.088 .088 .248

Assume each state of the economy is equally likely to happen.

Calculate the expected return of each of the following stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

Stock A% 10.17

Stock B% 11.70

Calculate the standard deviation of each of the following stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation

Stock A% 1.19

Stock B%12.99

What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.)

Covariance?

What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Correlation?

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