Madison would like to form a portfolio between Microsoft (Ticker: MSFT) and a bond index fund. The following table shows the performance of the two assets in each state of the economy.

Prob. MSFT(%) Bond(%)

Recession 0.1 -40 12

Normal 0.7 20 6

Boom 0.2 50 -2

Please fill in the following blanks:

The expected return of Microsoft is 20%, and the expected return of the bond fund is 5%.

The covariance between Microsoft and the bond is -84.

Suppose the standard deviation of Microsoft is 23.24% and the standard deviation of the bond fund is 3.92%. What is the correlation between MSFT and Bond?