Question I (20 points) Suppose you have invested in two stocks, A and B. You expect that returns on the stocks depend on the following three states of economy, which are equally likely to happen. State of Economy Return on Stock A (%) Return on Stock B (%) Bear 7.3 -4.7 Normal 11.5 5.4 Bull 16.6 24.3 (a) Calculate the expected return of each stock. (b) Calculate the standard deviation of returns of each stock. (c) Calculate the covariance and correlation between the two stocks