There are three securities in the market. The following chart shows their possible payoffs:

State. Probability of Outcome Return on Security 1 Return on Security 2 Return on Security 3

1 .16 .201 .201 .051

2 .34 .151 .101 .101

3 .34 .101 .151 .151

4 .16 .051 .051 .201

a-1.What is the expected return of each security?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1%

Security 2%

Security 3%

a-2.What is the standard deviation of each security?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1%

Security 2%

Security 3%

b-1.What are the covariances between the pairs of securities?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 5 decimal places, e.g., 32.16161.)

Security 1 & 2

Security 1 & 3

Security 2 & 3

b-2.What are the correlations between the pairs of securities?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Security 1 & 2

Security 1 & 3

Security 2 & 3

c-1.What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 2?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1 & 2%

c-2.What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 2?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1 & 2%

d-1.What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 3?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1 & 3%

d-2.What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 3?(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 1 & 3%

e-1.What is the expected return of a portfolio with half of its funds invested in Security 2 and half in Security 3?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 2 & 3%

e-2.What is the standard deviation of a portfolio with half of its funds invested in Security 2 and half in Security 3?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Security 2 & 3%