Question: Extra Tute Question (Topic 8 Risk and Return). Consider the following details for two shares, Share A and B. State of economy Probability RR Boom

Extra Tute Question (Topic 8 Risk and Return). Consider the following details for two shares, Share A and B. State of economy Probability RR Boom 30% 25% 30% Normal 50% 15% 20% Recession 5%-10% 20% (a) What is the expected return for each share? (b) What is the risk for each share? (d) What is the expected return on a portfolio consisting of 40% in Share A and 60% in Share B? (e) What is the risk of the portfolio in (d)

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