Below are the expected returns from both stocks based on the probability of economic conditions. It is desired to create a portfolio from two stocks. It is decided to invest 30% in stock A and 70% in stock B. Stock A State (1) p(i) E(R) Recession 0.50 -40% Neutral 0.40 15% Boom 0.10 30% 1.00 Stock B State (1) pi) E(R) Recession 0.5 40% Neutral 0.40 15% Boom 0.1 -20% 1.00 a- Compute the expected retum and standard deviation of each stock? (10 points) b- Find the covariance of stocks A and B? (10 points) c. Find the correlation coefficient between stocks A and B? (10 points) d. Find the expected return and standard deviation of this portfolio? (10 points) If you were a portfolio manager, what type of investors do you recommend this portfolio and why? (10 points) f. Explain why the bete of the market is always equal to 1 and beta of a treasury bill squal to 0 (0 points)