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There are three securities in the market. The following chart shows their possible payoffs: State 1 2 3 4 Probability Return on Return on Return

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There are three securities in the market. The following chart shows their possible payoffs: State 1 2 3 4 Probability Return on Return on Return on of Security 1 Security 2 Security 3 Outcome .15 .20 .20 .05 .35 .15 .10 .10 .35 .10 .15 .15 .15 .05 .05 .20 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 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 and 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Security 1 & 2 1 .... : % There are three securities in the market. The following chart shows their possible payoffs: State 1 2 3 4 Probability Return on Return on Return on of Security 1 Security 2 Security 3 Outcome .15 .20 .20 .05 .35 .15 .10 .10 .35 .10 .15 .15 .15 .05 .05 .20 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 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 and 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Security 1 & 2 1 .... : %

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