with furmola and steps

Sharma Al Ghantoot has invested $28,000 in KOA shares and $72,000 in LIA shares. Assume the market can have five states: very good, good, neutral, bad and very bad. . The probabilities for each state and the returns of two shares are given in the table below: State of the Economy Very good Good Neutral Bad Very bad Probability of of Occurrence 10% 15% 50% 15% 10% Stock 1: KOA *% 5% 39 Stock 2: UA 11% 8% 5% 29 39 2% 19 O Note: If your answer is in percentage points, round to two decimal points. If your answer is in decimals, round to four decimal points. Calculate the expected return for each stock separately. Stock 1: 12 points) Stock 2: b, Calculate the standard deviation of each stock separately Stockt: 12 points) Stock 2: C Based on the information given and/or your findings above, explain which stock is better investment. Why? (1 point) d. Calculate the expected return of a portfolio consisting of these two stock Cont) Focus 10 F3 F4 F5 F6 lo F8 FIO FX2 & 7 - n