Stock A Stock B Pinkco Return Betacorp Return (RD) (Ra) Depression -15% 3% Recession 12% 20% Normal 30% -7% Boom 45% 13% 1. Calculate expected return (R) of both stocks A and B. 2. Calculate the variance of both stocks A and B. 3. Calculate standard deviation of both stocks A and B. 4. Compare the risk and the return of both stocks A and B. 5. Calculate the covariance of the two stocks and comment on it. 6. Calculate the correlation of the two stocks and comment on it. 7. Taking into account the correlation calculation previously, assuming stock A goes up in price from 7$ (today's price) to 9$, what will be the price of stock B assuming it is at 11$ today