a. Calculate the expected return and standard deviation for Share S and T. 3 b. What are the covariance and the correlation coefficient between returns of S and T?

8). The returns on shares of S and T vary depending on the state of the economic growth. State of economy Probability of Returns on Sif Returns on T if Economic state economic state economic state occurring occurs (%) occurs (%) Recession 0.15 -9 17 Growth 0.70 18 19 Boom 0.15 40 20 Required: a. Calculate the expected return and standard deviation for Share S and T. 2 b. What are the covariance and the correlation coefficient between returns of S and T