Illustration Twelve: Suppose the economy can be in one of the folowing two states:) Boom or "good" state and (ii) Recession or "bad" state. Each state can occur with an equal opportunity (50%). The annual return on the market and a certain security X in the two states of the economy are as follows: Market: at the end of the year, the market is expected to yield a return of 30% in the good state and a return of (-10%) in the bad state; * Security X at the end of the year, the security is expected to