Consider the returns of two securities A and B which depends on the states of nature with the following probabilities Probability Returns% Recession Stable Expansion 0.3 0.4 0.3 12 6 15 7.5 10 5 [S marks] [5 macks) (ii) Compute the correlation coefficient between the two securities returnms and comment 4 marks) Reauired 1 Compute the expected returns of A and B. (ii) Compute the standard deviation of individuai securities (iv) Compute portfolios expected return for portfolio consisting of 60% of security A and 40%ofsecurity B. 4 marks) (7 marks) Total: 25 marks ) Compute the risk of portfolio in (iv) above