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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

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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

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