2. Given the following information, Total Investment $2,000 on Bond B Bond B Return $6,000 on Stock A Economy State Probability Good Normal Bad Stock A Return 0.4 0.4 0.2 15% 10% 3% 4% 600 8% a) Calculate the correlation coefficient between stock A and Bond B. b) Calculate the expected return and standard deviation of the portfolio, using BOTH scenario analysis method (calculate portfolio's return in each state and then follow the definition of E(r) and standard deviation, same as in the Excel homework) and the portfolio theory formula given bellow (the easier method, utilizing E(r) and std. of A and B and the correlation coefficient between A and B). c) Now, instead of $6,000 on stock A and $2,000 on bond B, investor needs a portfolio expected return 9% from the entire $8,000 investments. How should the investor allocate the fund between stock A and bond b