You are given the following information:

State of Economy Return on Stock A: Bear .115 Normal .102 Bull .086

Return on Stock B: Bear .058 Normal .161 Bull .246

#1 Assume each state of the economy is equally likely to happen. Calculate the expected return of each of the following stocks. (Round to 2 decimal places) Expected return Stock A % Stock B %

#2 Calculate the standard deviation of each of the following stocks. (Round to 2 decimal places.) Standard deviation Stock A % Stock B %

#3 What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign. (round your answer to 6 decimal places, e.g., 32.161616.) Covariance

#4 What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign. (round your answer to 4 decimal places, e.g., 32.1616.) Correlation