Use the following information for the next seven questions. Consider the following probability distribution for stocks A and B:

StateProbabilityStockAStock B

10.1-3%1%

20.25%4%

30.315%19%

40.422%11%

a) What is the expected rate of return of stock A?

b) What is the expected rate of return of stock B? Give your answer as a percentage.

c) What is the standard deviation of stock A? Give your answer as a percentage

d) What is the standard deviation of stock B? Give your answer as a percentage.

e) What is the covariance between stocks A and B?

f) What is the correlation coefficient between stocks A and B?

g) If you invest 40% of your money in A and 60% in B, what would be the portfolio's expected rate of return? Give your answer as a percentage.

h)If you invest 40%of your money in A and 60% in B, what would be the portfolio's standard deviation?Give your answer as a percentage