You work for a large investment management rm. The analysts with your rm have made the following forecasts for the returns of stock A and stock B: Probabili [autumn 20.00% 00.00% -15.00% 35.00% 35.00% 20.00% STRONG 30.00% -25.00% 30.00% VERY VERY STRONG 15.00% -40.00% 50.00% 100.0% __ Answer the following questions: a) Calculate the expected returns, variance and the standard deviations for stock A and B. b) What is the covariance of returns for Stock A and Stock B? What is the correlation coefcient for Stock A and Stock B? c) What is the expected return and stande deviation of a portfolio where 40% of the portfolio is in stock A and 60% of the portfolio is in stock B? (1) Create a table that has the expected return and standard deviation for different weights in each stock. This can be done using an excel data table. Start with 100% in A and zero in B, and increments of 5%, complete table. The last row, will have 0% in A and 100% in B. Then chart (or graph) your results. weight in A weight in B portfolio expected return portfolio standard deviation 0% 100% 5% 95% 10% 90% 15% 85% 20% 80% 25% 75% 30% 70% 35% 65% 40% 60% 45% 55% 50% 50% 55% 45% 60% 40% 65% 35% 70% 30%