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There are three securities in the market. The following chart shows their possible payoffs: State WN - Probability Return on Return on Return on of

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There are three securities in the market. The following chart shows their possible payoffs: State WN - Probability Return on Return on Return on of Outcome Security 1 Security 2 Security 3 .15 .20 .20 .05 .35 .15 .10 .10 .35 .10 .15 .15 .15 .05 .05 .20 4 a-1. What is the expected return of each security? (Do not round intermediate calculations and 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 and 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., 32.16162.) 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

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