3. (10 pts) Suppose that the stock prices in the following three scenarios are Scenario S(0) S(1) 100 110 100 105 100 90 S(2) 120 100 100 W3 with probabilities 1/5,2/5, 2/5, respectively. Find the expected returns E(K(1)), E(K(2)) and E(K(0,2)). Compare 1 + E(K(0,2)) with (1 + E(K(1)))(1 + E(K(2)))