An investor buys 1 share of ABC Ltd at the price of $32 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on December 1, 2020: $50 with a probability of 20% $34 with a probability of 50% $27 with a probability of 15% $20 with a probability of 15% a) Calculate the expected return for holding the share for a year. (2 marks) b) Calculate the variance of return and standard deviation of return. (3 marks) c) Explain the concept of diversification. Explain the benefit of diversification and how it works. (3 marks) d) The standard deviation of a portfolio's return can be reduced to zero by holding all the securities in the market. True or false? Explain. (2 marks)