6. Returns if State Occurs State of Economy Probability Stock M Stock N Boom 10% 18% 10% Normal 75% 7% 8% Recession 15% -20% 6% Required: a) Calculate Individual Stocks expected rate of returns. b) Calculate the risk of an individual stock. c) What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N? d) What is the portfolio risk if the stocks are positively correlated with 0.4 coefficients?