You have identified that VW Limited and AMG Corp are possible investments. You have also estimated three possible states of the local economy, each with its own probability of occurrence. Your estimates for the expected performance of the two shares under each state of the economy are presented in the table below: State of the Probability of the Rate of return Rate of return of economy economic state occurring of VW AMG Recession 0.3 -25% 6% Normal growth 0.3 9% 1% Boom 0.4 30% -3% REQUIRED: 2.1 Calculate the expected return of both shares. (8) 2.2 Calculate the standard deviation of both shares. (14) 2.3 Calculate the covariance and correlation coefficient of these two securities. (10) 2.4 Interpret the correlation coefficient as calculated in 2.3 (4) 2.5 Calculate the expected return and standard deviation of a portfolio consisting of 75% VW and 25% AMG.