(a). You are given the following information; Bear market Normal market Bull market Probability 0.3 0.4 0.3 Return for stock AA -15% 20% 30% Return for stock BB -10% 10% 15% 0. Compare the expected returns and standard deviation of return for stocks AA and BB. (12 marks) (ii). Identify risk-return trade-off for these investments. (3 marks) (b). You are trying to beat the market by making investment returns outperform the overall market average. As a junior investment analyst, currently you only have historical data of past prices and trading volume for security analysis. With such information in hand, identify the possibility to outperform the market base on the Efficient Market Hypothesis (EMH)