a) Given the information below about a portfolio comprised of 3 stocks, answer the following: (show all the details of your calculations): 1) The expected return on each stock, (6 marks) ii) The expected return on the portfolio using the individual securities' expected returns obtained in question (a) above. (4 marks) 111) Assume that the correlation between stock A and B is -0.25. Calculate the standard deviation of a portfolio containing 50% of stock A and 50% of stock B. (10 marks) Stock Standard Deviation Initial investment value Expected end-of- period investment value Proportion of portfolio initial market value 0.13 400,00 30% A 300.00 0.3 B 250.00 40% 350.00 0.25 800.00 850.00 30% C b) Next year a security will yield 98 with a probability of 0.65 and 112 with a probability of 0.35. An investor is willing to pay 90 for this asset today. The risk-free interest rate is 10% Answer the following questions (show all the details of your calculations): 1) Is this investor risk seeking or risk averse? Explain. (10 marks) ii) What is the risk premium? (5 marks) 111) Assume that the investor is ready to pay 88 for this asset, is this investor risk seeking or risk averse? Explain (10 marks) iv) Considering the result in question (111) above, what is the risk premium