Use the following information to answer questions 12-15 Return if State Occurs State of Probability of StateStockLStock M Econo Boom Normal Bust of the Economy 25% 40% 35% 18% 9% -3% -5% 8% 19% E(R) 85% 91 8% 12. (Ch 13) What is the expected return for Stock L? A) 7.05% B) 8.45% c) 6,05% D) 5.80% E) 7.95% 13. (Ch 13) What is the standard deviation of the returns on Stock L? A) 6.68% B) 8.18% C) 5.32% D) 10.1% E) 7.27% 15. (Ch 13) The covariance of returns for Stock L and Stock M is -0.0074. What is the standard deviation of the returns on a portfolio that is invested 40 percent in stock L and 60 percent in stock M? A) 2.31% B) 4.26% C) 2.73% D) 7.46% E) 5.37%