Can you please review my answers for Q5, but I really need help on Q6. Thank you.

Show all work computing to four decimal places. Set your calculator at 4 (four) decimal places (how? Texas Instrument BA II PLUS: 12ND] FORMAT 4 [ENTER]). Suppose you have invested only in two stocks, A and B. You expect that returns on the stocks depend equally likely to happen. on the following three states of economy, which are Return on Stock B -6.0% State of the Economy Recession Return on Stock A 3.0% 6.0% Normal 6.0% Boom 27.0% 9.0% Q.5: (i) Calculate the covariance between the two stocks. (ii) Identify the direction of interrelationship, i.e., positive, negative, or no relationship. (iii) Based on the covariance, how strongly are the returns on the two stocks related? OCovcareS= 0.33 (0.03-0.0594)-006-0.089)+ 0.33(0.06-6.03)0o0-0.0 +0.33 (6-09-0.0S9DCO.27-0.629 = 0.0033 Cit O.0033o pasiv 0.0033 CONCYA Ye) 0,9933 Gii) Core ae 0-024S. 1336 (i) Calculate the correlation coefficient between the rates of returns on the two stocks. (ii) Identify the direction of interrelationship, i.e., positive or negative relationship. (iii) Based on the correlation coefficient, how strongly are the returns on the two stocks related? Q. 6