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Fiona constructs an investment portfolio using two common stocks, A and B. 0.3 a. Suppose the weight attached to A, WA, is 0.5. Using that

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Fiona constructs an investment portfolio using two common stocks, A and B. 0.3 a. Suppose the weight attached to A, WA, is 0.5. Using that information, please fill in the blanks in the table below: Probability Return on A Return on B Return on Portfolio P when wA = 0.5 40% 0.4 10% 8% 0.3 50% 5% b. Assuming probability and the corresponding return rates of A and B remain the same as those in Question 4.a, please compute the return on portfolio P, when wA = 0.8 (simply fill in the blanks in the following table): Probability Return on A Return on B Return on Portfolio P, when wA = 0.8 40% 0.4 10% 50% 0.3 0.3 c. Assume the risk-free interest rate is 2%. Which portfolio is more attractive? Por P? Please explain

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