Winston Attoh is considering investing and he obtained the following data from a financial market data provider. Bloomers and Gringos are two firms listed on the stock market. State of Economy Probability Bloomers Gringos Risk-free Boom Normal Recession 0.4 0.20 0.45 0.09 0.3 0.16 0.10 0.09 0.3 0.02 -0.05 0.09 A. What is the expected return of a portfolio with 60% invested in Bloomers and 40% invested in Gringos? What is the volatility (risk) of this portfolio? [10 marks] B. What is the expected return of a portfolio that has 60% invested in Bloomers and the remainder in the risk-free security? What is the volatility of the portfolio? [6 marks] C. What is the expected return of a portfolio with 60% in Gringos and 40% in the risk- free? What is the volatility of this portfolio? [6 marks] D. What combination of the risk-free asset and Bloomers will provide the same expected return as Gringos? What is the volatility of this portfolio? [6 marks] E. Using the Sharpe ratio as a performance measure, which of the above portfolios will you advise Winston Attoh to invest in? Explain. [7 marks] Total: [35 marks]