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thanks TION A-COMPULSORY QUESTION 1 [20 Marks] The following are the expected return of two types of securities. State of Economy Probability Expected Return Security

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TION A-COMPULSORY QUESTION 1 [20 Marks] The following are the expected return of two types of securities. State of Economy Probability Expected Return Security X Expected Return Security Y 1 0.5 25% 60% 2 0.2 40% 55% 3 0.2 15% 20% 4 0.1 -5% 10% Required a. Calculate expected of Security X. (3 Marks) b. Calculate expected of Security Y. (3 Marks) c. Calculate standard deviation of Security X. (4 Marks) d. Calculate standard deviation of Security Y. (4 Marks) e. Calculate the covariance between Security X and Security Y. (5 Marks) f. Explain the relationship between Security X and Security Y. (1 Mark)

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