PLEASE ANSWER IN A PIECE OF PAPER WITH CLEAR EXPLANATION.

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Consider the following information about two stocks: State of the Rate of Return Economy Probability Stock A Stock B Boom 30% 25% 12% Moderate 20% 18% 20% Recession 50% -10% 4% The correlation coefficient between the returns of Stock A and Stock B is 0.820206. a) Calculate the expected return on each stock. b) Calculate the standard deviation of returns for each stock. c) If you create a portfolio consisting of 60% invested in Stock A and the remainder in Stock B, calculate the expected return and standard deviation of the portfolio. d) Assume the risk-free rate is 3%. What is the portfolio's risk premium