10 points Save Answer Question 3 You have been given with the following expectations about two stocks and B States Probabilities S B 1 0.3 20% 10% 2 0.4 30% 15% 3 0.3 10% 20% 1. Explain the different risks related to the investment in stocks on the financial market (2 Marks) 2. Compute the expected return of the stock and the expected return of the stock B (i Mark) 3. Compute the risk of the stock S and the risk of the stock B (2 Marks) 4. Explain the concept of risk - return tradeoff (2 Marks) 5. If you would like to create a portfolio in which you decide to combine equally between S and B, compute the expected return and risk of this portfolio (2 Marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B IVParagraph Arial 10pt A 2 IX % od a a se B. v V O WORDS POWERED BY TINY AL T 90 U E R G H s > O CS 7 2 --7-7 B M 1 X corre