Consider the following information on two stocks:

State Prob(State) Stock A Stock B

Boom 20% 0.18 -0.05

Normal 45% 0.06 0.15

Bust 15% -0.09 0.03

1.Calculate the expected return for stock A. (Enter percentages as decimals and round to 4 decimals)

2.Calculate the expected return for stock B. (Enter percentages as decimals and round to 4 decimals)

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

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

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

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