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