There are three potential states of the economy for the coming year, and there are three firms are available for investing You are an experienced investor, you are required to prepare the following Find the portfolios expected return and risk standard deviation Show the computation To maximize the return and minimize the risk, based on what you have learned in corporate finance, what can you do to achieve this goal Show the computations that can improve it With a simple and comprehensive explanation, critically evaluate your answer Investment Investment Firm A 20,000 Firm B 10,000 Firm C 20,000 Outcomes Probability Firm A Return Firm B Firm C Recession 0 2 0 12 0 09 0 03 Normal 0 5 0 06 0 045 0 05 Growth 0 3 0 11 0 085 0 08 c critically discuss the probability, how would it affect the portfolio's expected return and uncertainty risk standard deviation What can you do more with it Show the computations if necessary

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There are three potential states of the economy for the coming year, and there are three firms are available for investing. You are an experienced

There are three potential states of the economy for the coming year, and there are three firms are available for investing. You are an experienced investor, you are required to prepare the following:

1. Find the portfolios expected return and risk/standard deviation. Show the computation.
1. To maximize the return and minimize the risk, based on what you have learned in corporate finance, what can you do to achieve this goal? Show the computations that can improve it. With a simple and comprehensive explanation, critically evaluate your answer.

Investment	Investment
Firm A	20,000
Firm B	10,000
Firm C	20,000

Outcomes	Probability	Firm A	Return Firm B	Firm C
Recession	0.2	-0.12	-0.09	0.03
Normal	0.5	0.06	0.045	0.05
Growth	0.3	0.11	0.085	0.08

c.critically discuss the probability, how would it affect the portfolio's expected return and uncertainty/risk/standard deviation? What can you do more with it? Show the computations if necessary.