Question 1: (32 Marks) By using the following table of state of economy and stock returns, answer the questions: Security Returns (%) ILB State of Economy Bust Boom Probability of State of Economy 0.4 0.6 1.0000 -10% -40 TRN 30% 10 1. Calculate the Expected Returns for ILB and TRN (4 points) 2. Calculate the Standard Deviations for ILB and TRN (8 points) 3. Calculate the Expected Return on a Portfolio of 30% ILB and 70% TRN (6 points) 4. Calculate the Variance and standard deviation of a portfolio of 50% ILB and 50% TRN. (14 points)