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 .203 .203 .053 35 .153 .103 .103 .35 .103 .153 .153 .15 .053 .053 .203 a. What is the expected return and 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.) X Answer is complete but not entirely correct. Standard Deviation Security 1 Security 2 Security 3 Expected return 13.00 X % 13.00 X % 4.50 X % 4.50 X % 4.50 X % 13.00 X % b. What are the covariances and correlations between the pairs of securities? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your covariance answers to 5 decimal places, e.g., .32161. Round your correlation answers to 4 decimal places, e.g., 32.1616) X Answer is complete but not entirely correct. Covariance Correlation 0.00113 0.5556 X Security 1 & 2 Security 1 & 3 Security 2 & 3 -0.00203 X -1.0000 -0.00113 X -0.5556 X c. What is the expected return and 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 answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the expected return and standard deviation 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 answers as a percent rounded to 2 decimal places, e.g., 32.16.) e. What is the expected return and standard deviation 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 answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Expected return % % C. Security 1 & 2 d. Security 1 & 3 e. Security 2 & 3 % % % %