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Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 25% Normal 30% 15% -5% Slow 40% -5% 5% Bust

Consider the following information on two stocks:

P(State) Stock A Stock B
Boom 20% 30% 25%
Normal 30% 15% -5%
Slow 40% -5% 5%
Bust 10% -12% 0%

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

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

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

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

Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the weight of A in the portfolio. (Enter percentages as decimals and round to 4 decimals)

Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the expected return of the portfolio. (Enter percentages as decimals and round to 4 decimals)

Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the standard deviation of the portfolio. (Enter percentages as decimals and round to 4 decimals)

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