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Questions 1 - 1 0 are designed to review some statistical concepts as well as to help you understand the benefits from diversification. Assume that

Questions 1-10 are designed to review some statistical concepts as well as to help you understand the benefits from diversification. Assume that there are two assets (A and B) and there are four possible future scenarios. The four scenarios and their probabilities are shown in the following table. The last two columns show the returns on assets A and B in the four possible scenarios.
Question 2
[Question (1)-(10) are sharing the same information]
What is the expected return on asset B?
-0.011
0.005
0.009
0.015
\table[[Scenario,Probability,RA,RB
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