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URGENT HELP !! 10 There are three securities in the market. The following chart shows their possible payoffs 8 00:20:40 State 1 2 3 4

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10 There are three securities in the market. The following chart shows their possible payoffs 8 00:20:40 State 1 2 3 4 Probability Return on Return on Return on of Outcome Security 1 Security 2 Security 3 .16 194 .194 .044 34 144 094 .094 34 094 144 .16 044 044 .194 144. 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.) Standard Deviation % Security 1 Security 2 Security 3 Expected return 11.90% 11.90% 11.90 % % % 10 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) 8 00:20:02 Covariance Correlation Security 1 & 2 Security 1 & 3 Security 2 & 3 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 22 (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.) c. Security 1 & 2 d. Security 1 & 3 e. Security 2 & 3 Expected return % % Standard deviation % % % % M Prey 10 of 25 Next >

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