PROBLEM 6 State Probability Stock A's return Stock B's return Boom 0. 1 1 5% 1 1% Normal 0.8 10% 8% Recession 0.1 20% 3% 0. Referring to Table above, compute the expected rate of return for Stock B. State your answer 056' percentage with four digits after the decimal point. Denote negative returns with '-'sign. (ANS@ 7.8000%) 9% b. Referring to Table above, compute the standard deviation of return for Stock A. St r answer as a percentage with four digits after the decimal point. (ANSWER 3.2016%) \\fs/ State your answer with six digits after the decimal point. Use '-' to denot tive correlation. (ANSWER -o.545279) 8% d. Referring to Table above, compute the expected return of a @110 with 30% in StockA and 70% in Stock B. State your answer as a percentage with four digits 2g}? e decimal point. Denote negative returns with Sign. (ANSWER 8.9100%) Cb e. Referring to Table above, compute the standard ion of the return of a portfolio with 30% in Stock A and 70% in Stock B. State your answer as a pe age with four digits after the decimal point. 0 O (ANSWER 1.10684) Ag) c. Referring to Table above, compute the correlation coefficient between thegvs of the two assets