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III. (20 Points) Overall economic conditions afffect returns of common stocks. Suppose a financial analyst believes that four states of the natiomal eoconomy are possible and that each state Ihas an equal probability of occurrence. The estimated retuns of two stocks GM and IBM under these four states of economy are presented in the following table State of the Economy Negative Real Growth Zero Economic Growth Modest Real Growth High Economic Growth Return of IBM 3% 17 Retum of GM -11% 21 23 28 rob s 1. Calculate the expected return of these two stocks. 2. Celculate the standard deviation of retan of these two stocks. 3, Colculate the codelatio) of Gr and Jem. expected hDetermire the famdaardd devaion os ehuun or the follocomg postelios vest cd n N omd 301 detuo and omdd 201 nested in tem amd p