State of Economy Probability of State of Economy Return on Stock J Return on Stock K

Bear $\mathrm{.}23\mathrm{.}027\mathrm{.}027$

Normal $\mathrm{.}58\mathrm{.}131\mathrm{.}055$

Bull $\mathrm{.}19\mathrm{.}211\mathrm{.}085$

a$.$

Calculate the expected return for each of the stocks. $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Calculate the standard deviation for each of the stocks. $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the covariance between the returns of the two stocks? $($Do not round intermediate calculations and round your answer to $6$ decimal places, e$.$g$.,\mathrm{.}161616.)$

d$.$ What is the correlation between the returns of the two stocks? $($Do not round intermediate calculations and round your answer to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$