b) Assume that you can invest in any of the following three securities, Stock A, Stock B and S\&P 500 today. You will hold them for a period of one year, however, there is uncertainty about how well your investments will do over the ensuing year. This uncertainty is represented by the three "states of nature" that can potentially occur with probabilities of 1/3 each. The returns for each security in the three states of nature are detailed in the table below: REQUIRED (i) Calculate the expected returns for stock A and stock B. (4 marks) (ii) Calculate the standard deviation of the returns on stock A and stock B (6 marks) (iii) Assume that you invest 40% of your wealth in stock A and 60% of your wealth in S\&P 500. Calculate the: a. Expected return of your portfolio. (2 marks) b. Variance of your portfolio if the covariance between Stock A and S\&P 500 is 0.0667