Calculate the expected return for stock a

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State Prob(State) Stock A Stock B Boom 15% 0.22 -0.12

Normal 50% 0.07 0.15

Bust 35% -0.09 0.06

1. Calculate the expected return for stock A. (Enter percentages as decimals and round to 4 decimals)

2. Calculate the expected return for stock B. (Enter percentages as decimals and round to 4 decimals)

3. Calculate the variance of stock A. (Enter percentages as decimals and round to 4 decimals)

4. Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)

5. Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)

6. Calculate the correlation(A,B). (Enter percentages as decimals and round to 4 decimals)

Reference no: EM132497839

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