Question 2 (15 Marks) Consider the following information; State of Probability Return Return the of on on Economy Occurrence Asset X Asset Y Poor 0.2 20.0% -5.0% Stable 0.3 30.0% 24.0% Good 0.4 44.0% 40.0% Excellent 0.1 60.0% 50.0% Required a. Determine the expected return for Asset X and Y b. Determine the standard deviation for Asset X and Y. which stock is riskier? c. Determine Portfolio expected return, and portfolio standard deviation assuming the equal investment in the two assets d. If the Market Return (RM) is 15%, risk free rate of return 8% and beta values of 2.5 and 1.8 for asset X and Y respectively, Determine the required rate of return for Asset X and Y using CAPM