Let today be period 0 and the future (or tomorrow) be period 1: Consider an investor in period 0 , who is contemplating making the decision to invest in a portfolio that consists of two stocks: A and B. The economic conditions in period 1 are probabilistic and, thus, uncertain. Suppose the investor is expecting two states of nature: S1 and S2 in period 1 , with probabilities 0.5 and 0.5 respectively. Let PA0 and PA1 denote stock A's price in period 0 and period 1 respectively. Also, since period 1 depends on the state of nature, let (PA1)S1 and (PA1)S2 denote stock A's price in period 1 in states 1 and 2 respectively. Similar notation is used to denote period 0 and period 1 prices of stock B. The following data pertain to our two-period-two-states setup: PA0=$4(PA1)S1=$4.12and(PA1)S2=$4.08PB0=$5(PB1)S1=$5.1and(PB1)S2=$5.25 Suppose you decided to construct a portfolio p such that 40% of your wealth is allocated to asset A and 60% to B. Given this allocation, the risk of this portfolio is (If your final answer is 0.1%, record it as 0.001 ). Keep three decimal places in your computations. Select one: a. 0.005 b. 0.007 c. 0.006 d. 0.002 e. 0.004