The annual rate of return and related probabilities given below summarise your analysis for two securities. Security A Security B Rate of Return Probability Rate of Return Probability 10% 45% 5% 30% 14% 35% 15% 30% 18% 20% 25% 40% Required: a. Calculate the expected rate of return, E(R), for each security. (2 marks) b. Calculate the standard deviation, , for each security. (3 marks) c. Which security should you purchase? Explain why you make such choice. (2 marks) d. Imagine that you will make a portfolio that consists of 30% of Security A and 70% of Security B, assuming the covariance between A and B (A,B) is -0.0026. Based on the answer you obtain from a) and b), calculate the expected return, E(RP), and standard deviation, P, of your portfolio.