Question: Investment subject Some formulae: [ begin{array}{l} Eleft(r_{i} ight)=sum_{s} p_{(s)} r_{(s)} quad S D_{i}=sigma_{i}=sqrt{sum_{s} p_{(s)}left[r_{(s)}-E(r) ight]^{2}} operatorname{Cov}(x, y)=sigma_{x y}=sum_{s} p_{(s)}left[left(r_{x}-Eleft(r_{x} ight) ight) timesleft(r_{y}-Eleft(r_{y} ight) ight)

 Investment subject Some formulae: \\[ \\begin{array}{l} E\\left(r_{i}\ ight)=\\sum_{s} p_{(s)} r_{(s)} \\quad

Investment subject

Some formulae: \\[ \\begin{array}{l} E\\left(r_{i}\ ight)=\\sum_{s} p_{(s)} r_{(s)} \\quad S D_{i}=\\sigma_{i}=\\sqrt{\\sum_{s} p_{(s)}\\left[r_{(s)}-E(r)\ ight]^{2}} \\\\ \\operatorname{Cov}(x, y)=\\sigma_{x y}=\\sum_{s} p_{(s)}\\left[\\left(r_{x}-E\\left(r_{x}\ ight)\ ight) \\times\\left(r_{y}-E\\left(r_{y}\ ight)\ ight)\ ight] \\\\ P_{E}=D_{0}(1+g) /(R-g) \\end{array} \\] Question 1. Answer all parts of the question. I. The following table shows a market where there are only three securities, and in the next time period one of three possible outcomes will occur. (a) Calculate and interpret the expected return and standard deviation for each asset. (11 marks) (b) Calculate and interpret the returns correlation for each pair of assets

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