1.0 (information for exercises of 1) . Due to rising tourism and growing sales of snowstorm globes, the Easter Island economy experiences an unprecedented boom. The introduction of the National Easter Island Stock Exchange (NIESE) is only a natural consequence. The stocks of Fisher's Fishery (stock A) and Easter Island Relax Resorts (stock B) are the first traded securities. According to expert estimations, three future states of nature seem possible. The following table shows the return profile of both assets for all three states: State 1 State 2 State 3 Probability 0.25 0.40 0.35 Retum of stock A 0.18 -0.12 0.26 Retum of stock B -0.21 0.06 . Further calculations reveal that the expected return of stock A is 0.088. Its variance is 0.0298 and its volatility equals 0.1726. svariancepisce 0.24 1.1 (9 Points) Calculate the expected return of an investment in stock B (Mg). Also determine the variance and volatility of stock B's return (i.e. 0 , 0g) as well as the covariance of stocks A and B (Covas)