Wind PLC and Cloud PLC are two listed firms with the following possible payoffs: State Depression Recession Normal Boom Probability Stock return of Wind Stock return of Cloud (%) (%) 0.10 15 -2 0.40 10 5 0.40 5 10 0.10 -2 15 (a) Calculate the expected return and standard deviation of each stock. (8 marks) (b) Compute the covariance of each stock and the correlation between the two stocks. (8 marks) (c) What are the expected return and standard deviation of an equally-weighted portfolio? (9 marks)