Question: Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below: Probability Return on Security A (%)

Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below:

Probability

Return on Security A (%)

Return on Security B (%)

Black

0.6

3.0%

6.5%

White

0.4

15.0%

6.5%

Suppose Ameena invested $2,500 in Security A and $3,500 in security B. Calculate the expected return of her portfolio.

Calculate the standard deviation of each security?

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