Question 1 Suppose you can inmt your money in two assets: A and B. Asset A is risky and its rates of return depend on the state of the economy as follows: Probabili Rate of return on A 5'4: i__:i_ Moderate Growth \" ._\" Asset B is risk free with the rate of return of5%. {a} Compute the expected return on asset A and its standard deviation. {b} Compute the expected rate of return and standard deviation of your portfolio if you invest a proportion WA ofyour money the asset A and 1 WA in asset B. {c} [n a graph, represent the different combinations of the portfolio expected return and standard deviation, (15,516}, you can obtain by varying WA. Label on the graph the points corresponding to the following values of WA: {1, {1.25, 115, 1. {d} Suppose you decide to adhere to the following rule when constructing your portfolio: never accept portfolios which have standard deviation that is larger than the expected value of the portfolio return. 1What is the maximum proportion \"If\" that you can invest in A without violating this rule? Illustrate your answer on a graph. (e) Does the rule described in (d) guarantee that you will never lose money on your investment? Explain your