Assume you have a portfolio investment comprised of 70% in Madina Oil Company 30% in Adenta Textiles Ltd (Y). The expected returns on the investments are linked to the state of the economy as forecasted below. Likely state of the economy Boom Normal Bust Probability of occurrence (Pi) 0.3 0.4 0.3 Return on company X (Rx) Y (Ry) 3% 20% 10% 0% Return on company Required i) Calculate the return and risk levels of each of the companies ii) Calculate the covariance returns of the companies iii) Calculate the return and risk level of the portfolio X/Y 35% -5% (5 marks each) (1 mark) (4 marks)