Q6. You would like to invest in two shares A and B. The return on these shares over the next year depends on the state of economy, which will be described as Boom, Normal, Slow and Recession. The table below shows the probability of each of these states of economy, and the expected return on each share given each possible state of the economy. The correlation coefficient between shares A and B is 0.5. the Probability A Return B Return State of economy Boom Normal Slow Recession 0.12 0.20 0.40 0.25 0.15 0.25 0.21 0.16 0.10 0.08 - 0.06 0.05 a. What is the expected return on A and B shares? b. What is the standard deviation of A and B shares? c. What is the expected return on portfolio comprised of 55% invested in share A and the balance in share B? d. What is the standard deviation on portfolio comprised of 55% invested in share A and 45% invested in share B