a. Consider the following expected returns for two different assets (A and B) in five different market states (Boom, Bullish Normal, Bearish and Crisis), all of which have equal probabilities. Market State B Boom 30% 6% Bullish 18% 4% Normal 8% 3% Bearish -5% -1% Crisis -15% -2% b. Suppose that Big Foot ple has an expected return of 15% and Little Palm Corp has an expected return of 17%. The market portfolio has an expected return of 12%. ren