Intro The following table shows realized rates of return for two stocks. -10% B 1 Year Stock A Stock B 2 1 15% 3 2 -20% - 14% 4 3 -6% -8% 5 4 5% 28% 6 5 14% 8% 7 6 18% 4% Attempt 1/10 for 10 pts. Part 1 What is the arithmetic average return for stock B? 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the variance for stock B? 4+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the covariance of returns? 4+ decimals Submit - Attempt 1/10 for 10 pts Part 4 What is the correlation coefficient? 3+ decimals Submit Intro We know the following expected returns for stocks A and B, given different states of the economy State (s) Recession Normal Expansion Probability E(TA,s) E(TB,s) 0.1 -0.06 0.05 0.5 0.09 0.08 0.4 0.17 0.12 8 Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock B? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the standard deviation of returns for stock A? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 4 What is the standard deviation of returns for stock B? 4+ decimals Submit