Question Four The table below provides information on three risky assets: A,B and C in different states of the economy. The expected return on the market is 9% and the risk-free rate is 3%. Required a) Calculate the expected return and standard deviation of each of the three risky assets (A,B and C) in the table above. b) An investor creates an equally weighted portfolio consisting of assets A,B and C. Assuming the correlation between each pair of assets is 0.5 , calculate the expected return and standard deviation of this portfolio. c) Without doing any calculations, explain how the standard deviation of the portfolio calculated in 'Part b ' would be different if the correlation between each pair of assets was -0.2