State of Economy Return on Stock A Return on Stock B

Bear $\mathrm{.}073\mathrm{.}094$

Normal $\mathrm{.}134\mathrm{.}142$

Bull $\mathrm{.}062\mathrm{.}321$

Assume each state of the economy is equally likely to happen.

a$.$ Calculate the expected return of each stock. $($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 of each stock. $($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? $($A negative answer should be indicated by a minus sign, 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? $($A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$