answers for financial management and risk appraisal please.

Q1) (20 Marks) Refer to the following information on the return distribution for two assets in which you are contemplating to invest in; State of Economy Probability that the Return if the state Return if the state state of economy occurs occurs Asset AA Asset BB occurs BOOM 10% 40% 60% AVERAGE 40% 20% 30% BELOW AVERAGE 20% 20% 10% POOR 30% -20% -30% In addition to the above return distribution the two assets (AA & BB) operate in different industries and hence characterized by a market risk (Beta) of 2 and 3 respectively. The market risk premium (RM-RF) or the slope for fairly correctly priced assets is 14%. In the same economy government treasury bills reward a risk free return of about 11%. Required: a. Calculate the expected return for assets AA & BB respectively (4 marks] b. Calculate the required rate of return assets AA & BB respectively using the CAPM (4 marks] c. Calculate the standard deviation for assets AA & BB respectively (4 marks] d. If the company wants to invest in the two assets with the ratio of 45:55 what is the portfolio standard deviation and Portfolio return [4 marks) e. If the company wants to invest in the two assets with the ratio of 50:50 what is the portfolio Beta and Portfolio required rate of return [4 marks]