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Economics The table below shows the estimated expected returns on a portfolio of investments A and B constructed to diversify a way some business risk

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Economics The table below shows the estimated expected returns on a portfolio of investments A and B constructed to diversify a way some business risk in Pema Ltd. The returns are dependent in the market outlook which can be Optimistic Indifferent or Pessimistic sentiments with estimatedprobabilities of 0.25, 0.50 and 0.25 respectively. Returns on A % Returns on B % Market Returns (%) Billion Market 20 15 10 Plant Market 15 18 15 Bonus Market 10 20 20(1) Assets A , B and Market expenses returns (1i) Assets A, B and Market expected standard deviation returns (ili) Assets A, B and Market expected coefficient of variation or returns (iv) Portfolio returns (v) Market beta

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