$3.$ Based on the following information, calculate the expected return and standard deviation of returns for each of the following stocks. Assume that each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks?

Economic state Return on stock A Return on stock B

Bull $6\%23\%$

Regular $12\%14\%$

Bear $8\%-7\%$ Based on the following information, calculate the expected return and standard deviation of

returns for each of the following stocks. Assume that each state of the economy is equally

likely to happen. What are the covariance and correlation between the returns of the two

stocks?