Exercise Questions 3. The following problem is based on the information provided in the table below: Deviation Deviation Probability Return Return from from weighted on Stock on Stock mean, mean, product of Scenario Probability A B Stock A Stock B deviations Recession 0.2 -22% 3% Normal 0.7 4% -5% Boom 43% 10% Expected Return = Covariance = 0.1 a. Determine the expected return for Stock A and Stock B b. Compute the covariance between Stock A and Stock B. de Big Button