212.The following probability distribution relating to returns on an individual security and the market portfolio are given:

State Probability Return on a Security, % Return on a selected Market Index, %

Boom 0.10 31 25

Good 0.14 23 17

Average 0.31 10 14

Poor 0.25 3 5

Crash 0.20 -15 -5

Required:

a.calculate the expected return and standard deviation of returns for the market index portfolio.

b.Expected Return:

c.Variance:

d.Standard Deviation