PLZ SOLVE IT MANUALLY DON'T USE SHORTCUTS OR EXCEL FORMULAS

2. Anclyze the following situationis carefully and answer the questions given below it. 120 The given information consist the expected rate of return of two different companies X and Y with their associated probabilities under different states of economy. Based on the information provided, answer the cach of the requirement given below. Scanned with CamScanner State Stock Y Market Probability Stock X Best Case 0.1 15 20 13 Good Case 12 0.2 19 11 Most Likely 0.4 10 14 7 Poor Case 0.2 1 3 1 Worst Case 0i (16) (5) (12) Assume that the risk free rate is 6% and market risk premium is 5%. Calculate the betas of Stocks X and Y, and interpret the result. b. Calculate the expected rate of return of Stock X, Y, and interpret the result. c. What is the portfolio risk and return if investor invests80% of the amount in Stock X and 20% of amount in Stock Y? d. Find the required rate of return on portfolio. Plot the security market line and explain the risk and return relationship. 3. e