A) Calculate the variance of stock B. (Enter percentages as decimals and round to 4 decimals)

B) Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)

C) Suppose you invest $25,000 into stock A, and $15,000 into stock B.Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

D) Suppose you invest $25,000 into stock A, and $15,000 into stock B.Calculate the standard deviationof the portfolio. (Enter percentages as decimals and round to 4 decimals)

Consider the following information on two stocks:

State Prob(State) Stock A Stock B

Boom 20% 0.25 0.02

Normal 40% 0.11 0.15

Bust 40% -0.09 0.04