estion 3 An analyst at Standard Bank has been monitoring the performance of two large scale businesses to invest on behalf of his clients. The two companies Lemme Health Services and Manong Industries are based in Maseru and the analyst have been provided the following information on the stocks. Use the information to answer questions that follow: STATE OF ECONOMY LEMME MANONG Strong downturn -10% 2% Moderate Downturn -4% 7% Slow growth 4% 6% Moderate growth 12% 4% Strong growth 20% 4% a) What is the expected return on Lemme and Manong stocks? (6 marks) b) Calculate the variance and standard deviation for Lemme and Manong. (8 marks) c) What is the expected return of an equally weighted portfolio of the two stocks? (4 marks) d) Briefly, differentiate between systematic risk and firm specific risK. (2 marks)