(25 Marks) 2.1 Consider the following information: State: B o om N o rmal S l o wdown R e cession Probability: 0 . 3 0 0 . 4 0 0 . 2 0 0 . 1 0 ABC Returns: 0 . 1 4 0 . 0 9 0 . 0 3 - 0 . 02 Based on the information provided above, calculate the following: 2.1.1 Expected return (5 Marks) 2.1.2 Variance (5 Marks) 2.1.3 Standard deviation (5 Marks) 2.2 The expected returns of a portfolio are influenced by several factors that investors should consider when constructing and managing their investment portfolios. You are required to write a mini essay which discusses the factors that affect expected returns of a portfolio. (10 Marks)