The table here shows the$$ no$-$arbitrage prices of securities A and B that we calculated.$($Click on the following icon in order to copy its contents into a$$ spreadsheet.$)$

Cash Flow in One Year

Security

Market Price Today

Weak Economy

Strong Economy

Security A

$$$$229$

$$$$20$

$$$$609$

Security B

$$$$347$

$$$$609$

$$$$20$

a$.$ What are the payoffs of a portfolio of one share of security A and one share of security$$ B$?$

b$.$ What is the market price of this$$ portfolio? What expected return will you earn from holding this$$ portfolio?

Question content area bottom

Part $1$

a$.$ What are the payoffs of a portfolio of one share of security A and one share of security$$ B$?($Select the best choice$$ below.$)$

A$.$

Portfolio Upper A plus Upper B pays $ $20$ in both cases$($i$.$e$.,$ it is risk$$ free$).$

B$.$

Portfolio Upper A plus Upper B pays $ $629$ in both cases$($i$.$e$.,$ it is risk$$ free$).$

C$.$

Portfolio Upper A plus Upper B pays $ $576$ in both cases$($i$.$e$.,$ it is risk$$ free$).$

D$.$

Cannot be determined without the discount rate.

Part $2$

b$.$ What is the market price of this$$ portfolio?

The market price of this portfolio will be $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $3$

What expected return will you earn from holding this$$ portfolio?

The expected return is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$