Stock A is expected to produce the following returns given various states of the economy: Table 1 - Stock A

State of Economy	Probability of state of Economy	Possible Return
Good	70%	20%
Bad	30%	12%

Table 2 - Stock B and Stock C

Stock	Expected Return	Standard Deviation	Correlation Coefficient with A
B	25%	15%	0.8
C	18%	12%	-0.2

1) What is the expected return of stock A? 2) What is the standard deviation of the expected return of stock A? 3) If an investor is considering combine stock A with another stock to build a two-stock portfolio, which one of the two (Stock B or Stock C) is a better choice with the given information in Table 2 and why?

Please show all the work.