Scenario	Probability of Outcome	Return on Security 1	Return on Security 2	Return on Security 3
1	0.25	-0.25	0.25	0.10
2	0.3	0.20	-0.15	0.15
3	0.3	-0.15	0.20	0.20
4	0.15	0.10	-0.10	0.25

A. What is the expected return and standard deviation for each security?

B. What are the co-variances and correlations between the pair of securities?

C. What is the expected return and standard deviation for a portfolio with half of its funds in stock 1, and the other half in stock 2?

D. What is the expected return and standard deviation for a portfolio with half of its funds in stock 1, and the other half in stock 3?

E. What is the expected return and standard deviation for a portfolio with half of its funds in stock 2, and the other half in stock 3?

F. What do your answers above imply about diversification?