You will use the following information to answer 5 different questions (I will repeat it again, but it is the same information). You own a portfolio that is invested 50% in stock A and 50% in stock B. Given the following information on the returns of stocks A and B under the different states of economy, what is the correlation between stocks A and B? State of the Economy Probability Stock A (Return) Stock B (Return) Good 0.5 20% 0% Bad 0.5 -10% 10% options:

1

-1

0

-0.5