Noella Simpson created a riskless portfolio by investing 60% in Stock P and 40% in Stock Q. Outcome Probability Stock P Stock Q

A 0.2 20% 8%

B 0.8 5% ? Required: What is the return of Stock Q under Outcome B?

b) Noella Simpson created a riskless portfolio by investing 60% in Stock P and 40% in Stock Q. Outcome Probability Stock P Stock A 0.2 20% -8% B 0.8 5% ? Required: What is the return of Stock Q under Outcome B? (12 Marks) (Total: 20 Marks)