ABCO is a conglomerate that has ksh4 billion in common stock. Its capital is invested in four subsidiaries: Entertainment (ENT), Consumer products (CON), Pharmaceuticals (PHA) and insurance (INS). The four subsidiaries are expected to perform differently, depending on the economic environment as follows: Investment in ksh millions Poor economy Average economy Good economy ENT 1,200 20% -5% -8% CON 800 15% 10% -20% PHA 1,400 -10% -5% 27% INS 600 -10% 10% 10% Assuming that the three economic outcomes (1) have an equal likelihood of occurring and (2) that the good economy is twice as likely to take place as the other two: i) Calculate the individual expected returns for each subsidiary ii) Calculate the implicit portfolio weights for each subsidiary and an expected return and variance for the equity in the ABCO Conglomerate