B. Partnership Section B: 10 marks Assume you have a portfolio investment comprised of 70% in Madina Oil Company (%) and 30% in Adenta Textiles Ltd (Y). The expected returns on the investments are linked to the state of the economy as forecasted below. Likely state of the Probability of Return on company occurrence (Pi) company X (Rx) Y (Ry) Return on economy 3% Boom 0.3 20% 35% Normal 0.4 10% 0.3 0% -5% Bust Required i) Calculate the return and risk levels of each of the companies (5 marks each) ii) Calculate the covariance returns of the companies (1 mark) iii) Calculate the return and risk level of the portfolio X/Y (4 marks) (Total 10 marks)