3 A portfolio with stock A and stock B is constructed. The relevant information is given in the following tables. Probability State of economy Bear Bull Return on stock A (% 5.0 15.0 Return on stock B (% 5.5 5.5 0.6 0.4 (a) Calculate the expected returns and standard deviations of the two stocks. [7 marks] (b) Suppose amount of RM1500 and RM3500 are invested in stock A and stock respectively. Determine the expected return and standard deviation of the portfolio. [6 marks] () Based on (b), calculate the portfolio VaR at 95% level. [2 marks]