You are given the following information: State of Economy Return on Stock A Return on Stock B Bear .117 .060 Normal .100 .163 Bull .088 .248 Assume each state of the economy is equally likely to happen. Calculate the expected return of each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Expected return Stock A 10.17 % Stock B 11.70 % Calculate the standard deviation of each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Standard deviation Stock A 1.90 % Stock B 12.99 % What is the covariance between the returns of the two stocks? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 6 decimal places (e.g., 32.161616).) Covariance =_______________

What is the correlation between the returns of the two stocks? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 4 decimal places (e.g., 32.1616).) Correlation=_________________