The returns on shares of company A and B vary depending on the state of economic growth.

State of the economy	Probability Pi	Return on A RA (%)	Return on B RB (%)
Boom	0.3	20	3
Growth	0.4	10	35
Recession	0.3	0	5

1. Calculate expected return and standard deviation of company A shares. (2 marks)
2. Calculate expected return and standard deviation of company B shares. (2 marks)

What are the covariance and the correlation coefficient between returns on A and returns on B? (1 mark