Question 1 (14 Marks) The following table shows the probability distribution of the holding-period returns (HPR) for ABC Stock and PIC Stock: Probability HPR for ABC Stock State of Economy Good HPR for PIC Stock 5% 0.30 25% Normal 0.50 9% 10% Recession 0.20 -10% -7% a. What are the expected holding-period returns for i. ABC Stock; and ii. PIC Stock? 4 marks b. What are the expected variance and expected standard deviations for i. ABC Stock; and ii. PIC Stock? 7 marks c. Suppose that the total market value of your portfolio is $300,000, you invested $270,000 in ABC Stock and $30,000 in PIC Stock. Calculate the expected return of your portfolio. 3 marks Show all your calculations