AKD securities analyst is constructing a portfolio for his investor with three stocks, PSO, ABL, Lucky Cement with 40%,40% and 20% invested respectively. What is this Portfolio's expected return? Also, your boss has asked you to find out what is the individual risk associated with each of these three stocks (provide all the calculations along with the final figures for stock's risk analysis).(02 Marks)

Economic condition

Probability of Economic condition

Rate of return if Economic condition occurs

PSO

ABL

Lucky Cement

Boom

0.15

0.35

0.45

0.27

Good

0.55

0.16

0.10

0.08

Poor

0.25

-0.01

-0.06

-0.04

Bust

0.05

-0.12

-0.12

-0.09