Q4) You are considering investing in two stocks, stock X and stock Y. Given your research, you expect two possible scenarios for the future: a bull market and a bear market. You also uncovered the return distribution of X and Y:

Scenarios	Probabilities	Return for Stock X	Return for Stock Y
Bull	0.3	0.8	-0.3
Bear	0.7	0.4	0.1

1. Compute the expected return of X and Y. (2 points)
2. Compute the standard deviation of X and Y. (4 points)
3. Compute the Sharpe ratio of X and Y. Assume the risk-free rate is 1%. (4 points)
4. Compute the covariance and correlation coefficient between X and Y. (5 points)