9. Consider the case of two financial assets and three market conditions (states). The table below gives the respective probability for each market condition and the return of each asset in each one of them. Market Conditions State Recession Normality 60% Expansion 30% 10% Probability of state Return of asset A -20% 20% 70% Return of asset B -10% 10% 35% a. Derive the expected returns and the standard deviation of returns for the two assets above. [15 marks] b. Consider the portfolio with 50% investment in each of the two assets above. Calculate the expected return and the standard deviation of the portfolio. [15 marks] c. Estimate the equation of the efficiency frontier. [30 marks]