Covariance and Correlation The following table shows the expected returns from six different stocks in three different states of the economy: State of Economy Probability Return Stock A Return Stock B Return Stock C Return Stock D Return Stock E Return Stock F Growth 0.25 32% 3% 16% 21% 0% 20% Status Quo 0.50 22% 1% 4% 8% 5% 4% Recession 0.25 20% 4% -5% -6% 6% -4% A) Calculate the expected return for each stock. (18 Points) B) Calculate the standard deviation for each stock. (18 Points) C) Consider of a portfolio consisting of 51% in Stock A and 49% in Stock B. Calculate the covariance between Stocks A and B. Calculate the expected return of the portfolio. Calculate the standard deviation of the portfolio. (18 Points) D) Consider of a portfolio consisting of 51% in Stock C and 49% in Stock D. Calculate the covariance between Stocks C and D. Calculate the expected return of the portfolio. Calculate the standard deviation of the portfolio. (18 Points)e)Consider of a portfolio consisting of 51% in Stock E and 49% in Stock F. Calculate the covariance between Stocks E and F. Calculate the expected return of the portfolio. Calculate the standard deviation of the portfolio. (18 Points)