Based on the following information determine the covariance and correlation between the returns of the two stocks.

State of Economy Probability of State of Economy Return of X Return of Y Bear 0.10 -0.03 0.05 Normal 0.65 0.11 0.062 Bull 0.25 0.25 0.092

Group of answer choices

Cov = 0.001086, Corr=0.00019

Cov= 0.001092, Corr=0.9327

Cov = 0.001086, Corr=0.9589

PLEASE EXPLAIN EACH STEP REQUIRED FOR THIS ANSWER!! INCLUDING HOW TO GET THE STANDARD DEVIATION, COVARIANCE, AND CORRELATION.