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No. 5 Answer needed. Not 6th Question No 05 Return on Square State of Economy Return on GP (%) Bear 3.00% 6.50% Bull 15.00% 6.50%

image text in transcribedNo. 5 Answer needed. Not 6th

Question No 05 Return on Square State of Economy Return on GP (%) Bear 3.00% 6.50% Bull 15.00% 6.50% The probability of the state of economy to be Bear is 0.6 1. Calculate the expected returns and standard deviations of the two securities. 2. Suppose Miss Sayma invested $2,500 in GP and $3,500 in Square Pharma. Calculate the expected return and standard deviation of her portfolio Question No 06 You are an active trader at DSE. Due to some legal issues of GP with government, you are expecting the price of GP will fall. You decide to sell short 500 shares of GP when it is selling at its yearly high of 350 Tk. Your broker tells you that your margin requirement is 45 percent. While you are short the stock, GP

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