Your Question:

Scenarios	Probability of scenario occurrence	Expected performance share A	Expected performance share B	Expected performance share C
Recession	20%	4%	10%	3%
Stabilization	60%	6%	6%	6%
Development	20%	8%	2%	9%

) The same investor decides to invest, the following amounts, only in one of the following two portfolios:

Portfolio P: EUR 30,000 in share A and EUR 70,000 in share B Portfolio P: EUR 30,000 in share C and EUR 70,000 in share B

Calculate the expected return and risk (standard deviation) for each of the two portfolios. The co-fluctuation of the returns of shares A and B (Portfolio ) is -0.00032 and the corresponding of the returns of shares C and B (Portfolio P) is -0,00048.

Comment on the expected return and risk (standard deviation) of shares A, B and C. Also comment on the investment rates in each share (wi), the expected return and the overall risk of the portfoliosN P and P. Finally, comment on the co-fluctuations of Shares A and B and Shares B and C.