b) You are considering the two securities listed below.

Stock	Stock A	Stock B
Initial Investment	RM25,000	RM35,000

Economy Outcomes	Probability	Stock A Returns	Stock B Returns
Pessimistic	20%	5%	13%
Normal	50%	10%	8%
Optimistic	30%	15%	-15%

i) Calculate the expected return for portfolio.

ii) Calculate the standard deviation of returns for portfolio.

iii) Justify why diversification work best for these stocks.