Question 2 - Risk and Return (10 marks) You are considering a portfolio consisting of investments in the stocks Sunny and Rain Returns on the 2 stocks under various conditions are shown below. Probability 0.05 0.25 0.40 0.25 0.05 Sunny 3% 5% 15% Rain 1% 5% 25% 30% 40% 17% 36% a. Calculate the expected rate of return and the standard deviation for each investment!(7 marks) b. Which portfolio that you will invest in? Explain your answer using a financial principle