Question: answer ONLY C, Please 9. Consider the case of two financial assets and three market conditions (states). The table below gives the respective probability for

answer ONLY C, Please

answer ONLY C, Please 9. Consider the case of two financial assets

9. Consider the case of two financial assets and three market conditions (states). The table below gives the respective probability for each market condition and the return of each asset in each one of them. a. Derive the expected returns and the standard deviation of returns for the two assets above. [15 marks] b. Consider the portfolio with 40% investment in asset A and 60% investment in asset B. Calculate the expected return and the standard deviation of the portfolio. [15 marks] c. Estimate the equation of the efficiency frontier. [30 marks]

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