Please make sure your answers match one of the options below for each part. Thank you!

Problem 1 Consider the following information about three stocks: Your portfolio manager has invested 30% of your money in Stock A, 50% in Stock B, and 20% in Stock C. a) What is the expected return of your portfolio? b) What is the covariance between Stocks A and B? c) What is the correlation coefficient between Stocks B and C? d) What is the standard deviation of your portfolio? Hint: Instead of using the portfolio variance formula for three stocks, you can save time by calculating the return on the portfolio for each of the four states of the economy, and then calculate the standard deviation of these returns. Problem 1) a) What is the expected return of your portfolio? Select one: 12.55%9.17%9.85%10.55%9.65%9.00%10.00%8.85%crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout Problem 1) b) What is the covariance between Stocks A and B? Select one: Insufficient information cross out 0.0072 cross out 0.0000 cross out 0.8900 cross out 0.0001 cross out 0.5402 cross out 0.5000 cross out 0.0089 cross out Problem 1) c) What is the correlation coefficient between Stocks B and C? Select one: 1.000.01Insufficientinformation1.000.540.500.800.00crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout Problem 1) d) What is the standard deviation of your portfolio? Select one: 7.55%0.88%9.14%12.88%10.00%10.52%11.79%9.38%crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout