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	.15	.209	.209	.059
2	.35	.159	.109	.109
3	.35	.109	.159	.159
4	.15	.059	.059	.209

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.)

	Expected return
Security 1	%13.4
Security 2	%13.4
Security 3	%13.4

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.)

	Standard deviation
Security 1	%4.61
Security 2	%4.61
Security 3	%4.61

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.)

	Covariance
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.)

	Correlation
Security 1 & 2
Security 1 & 3	-1
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.)

	Expected return
Security 1 & 2	%13.4

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.)

	Standard deviation
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.)

	Expected return
Security 1 & 3	%13.4

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.)

	Standard deviation
Security 1 & 3	%.333333

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.)

	Expected return
Security 2 & 3	%13.4

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.)

	Standard deviation
Security 2 & 3	%