An investment firm is considering a portfolio of Stocks RCB and BSN$.$ The firm has a total of $$20,000,000$ to invest and will invest $$10,000,000$ in each stock. It is expected that there will be three economic states: Good, Average, and Bad, each with equal probability of occurrence $($please round to $4$ decimal places$).$ The table below shows the dollar return for stock RCB and the percentage return for stock BSN and T$-$bills under the different economic states. Using this information please answer the following questions:

a$.$ What is the expected return for stock RCB$?(2$ marks$)$

b$.$ What is the standard deviation of the returns of stock BSN$?(3$ marks$)$

c$.$ What is the expected return of this portfolio? $(2$ marks$)$

d$.$ What is the covariance of the return between the stocks RCB and BSN$?(3$

marks$)$

e$.$ What is the correlation coefficient of the returns between the stocks RCB and

BSN$?(2$ marks$)$

f$.$ What is the standard deviation of the portfolio? $(2$ marks$)$

g$.$ Are there any benefits to combining these two stocks in a portfolio? Explain. $(2$

marks$)$

h$.$ Instead of investing in stock RCB and BSN$,$ the firm would like to invest equal

amounts in stock RCB and T$-$bills. What would be the standard deviation of

the resulting portfolio? $(3$ marks$)$