1. (14 pts) The Grunewald Company has developed the following data regarding the rates of return on a potential stock and the market:

State of the Economy of Each Rates of Return If State occurs

	State Occuring
Deep Recession	.20
Mild Recession	.20
Average	.20
Mild boom	.20
Strong boom	.20

Stock A	Market
(20%)	(30%)
10	5
15	20
20	25
25	30

1. Caculate the standard deviations for the stock A and the Market.
2. Calculate the betas for the stock A and the market
3. Calculate the probability that stock As return is negative, that is P (K<0)=?
4. Calculate the probability that stock As return is between 0 and 15%, that is P (0
5. Calculate the Covariance and correlation coefficient between stock A and the market.

PLEASE: If possible, do step by step with the Financial calculator HP10BII