Problem 11-26 Covariance and Correlation Based on the following information: State of Economy Return on Stock J Return on Stock K Probability of State of Economy .21 .56 .23 Bear Normal Bull -.011 .147 .227 .043 .071 .101 a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) a. % Stock J Stock K % % b. Stock J Stock K % c. Covariance d. Correlation