RM 405 Problem Set 1 ( Due in class Tuesday Feb . 7 ) For the next six questions , use the following table showing the expected returns from six different stocks in three different states of the economy .... State of Probability Return for Return for Return for Return for Return for Return for ECONOMY V Stock A Stock B Stock C Stock D Stock E Stock F Growth 1 13 30 15 24 18 Status QUO 1 13 22 1 3 3 3 Recession 20 A - 3 - 6 4 - 3 1 . Calculate the covariance and correlation for the returns for Stock A and Stock B