You recently purchased a two-stock portfolio. 70% of the portfolio is Stock A and 30% of the portfolio is Stock B. Economists forecast three possible economic conditions: Boom, Average, or Recession. There is a 20% probability of a Boom, a 60% probability of Average conditions, and a 20% chance of Recession. Stock A is estimated to have a 15% return during Booms, a 10% return during Average conditions, and a 5% return during recessions. Stock B would have a 5% return during Booms, a 15% return during Average conditions, and a 20% return during recessions. Calculate the following estimates:

A. Expected return for Stock A (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

B. Standard deviation for Stock A (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

C. Expected return for Stock B (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

D. Standard deviation for Stock B (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

E. Expected return for the portfolio (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

F. Correlation coefficient for Stocks A and B (nearest 1/1000 of whole number, e.g. 0.398)? Answer

G. Standard deviation for the portfolio (nearest 1/100 of one percent without % symbol, e.g. 6.98)? Answer

H. Select the response that best describes the correlation coefficient

No correlation

Weak positive

Weak negative

Strong negative

Strong positive