3.The following table shows information about return of stock and

bond. Suppose that your Portfolio contains of 60% stock, 40%

bond.

scenario	Probability	Stock Fund	Bond
recession	0.3	- 11	16
Normal	0.4	13	6
Boom	0.3	27	-4

1. Calculate the expected return of stock, bond, and portfolio.

2. Calculate Standard Deviation of stock, band, and Portfolio

3. Calculate the covariance

4. Calculate the correlation

5. What is your opinion?