Consider the following scenario analysis and answer thefollowing 3 questions:

Economy	Probability	Return on Stock A	Return on Stock B
Good	20%	20%	30%
Normal	50%	15%	10%
Bad	30%	10%	5%

14. What are the expected return andstandard deviation of stock A?

      A)13.5% and 5.3%

      B)14.5% and 4.0%

      C)14.5% and 5.3%

      D)14.5% and 3.5%

15. What are the expected return andstandard deviation of stock B?

      A) 17%and 8.2%

      B) 17%and 6.5%

      C)12.5% and 9.0%

      D)12.5% and 3.1%

16.       What’s the correlationcoefficient between the two stocks?

      A)0.8

      B)-0.8

      C)-0.9

      D)0.9