The annual rate of return and related probabilities given below summarise your analysis for two securities. Security A I Security B Rate oi Return Probability Rate of Return Probability 10% 30% 14% 30% 18% 40% Required: a. Calculate the expected rate of return, EIR), for each security. {2 marks} b. Calculate the standard deviation, 6, 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 39% of Security A and ?D% of Security B, assuming the covariance between A and B {511,3} is -.0026. Based on the answer you obtain from a) and h], calculate the expected return, ElRp), and standard deviation, Tip, of your portfolio. {5 marksi