Hello, How are you ? I have some investment questions and I want you help me to answer them as soon as possible.

1) Based on the outcomes in the following table choose which of the following statements below is (are) correct ?

Scenario	Security A	Security B	Security C
recession	Return>E(r)	Return	Return=E(r)
normal	Return=E(r)	Return=E(r)	Return=E(r)
boom	Return	Return>E(r)	Return=E(r)

I. The covariance of security A and security B is positive

II. The covariance between securities A and C is negative

III. The covariance between securities B and C is zero

IV. The covariance between securities B and C is positive

A) I ONLLY

B) II and IV only

C) II and III only

D) I,II and III

E) II,III,and IV

2) The standard deviation of return on investment A is .20 while the standard deviation of return on investment B is .12 If the covariance of returns on A and B is .0072, the correlation coefficient between the returns on A and B is _____

A) 0.20

B) 0.30

C) 0.36

D) 0.60

E) 0.77

3) Suppose that a stock portfolio and a bond portfolio have a positive correlation this means that

A) The returns on the stock and bond portfolios tend to move inversely

B) The returns on the stock and bond portfolios tend to very independently of each other

C) The returns on the stock and bond portfolios tend to move together

D) The covariance of the stock and bond portfolios will be zero

E) The covariance of the stock and bond portfolios will be negative