Suppose there is a 50% chance that the expected return in investment A will be + 10% and another 50% chance that it will be + 30% similarly there is a 40% chance that the expected return on investment B will be + 5% and another 60% chance that it will be + 10%

i. Calculate the expected returns of investment A and B

ii. Calculate the standard deviations of investment A and B

iii. Assume Ghana government's notes is offering 5% calculate the risk premium on both assets