Question: Please show all steps and all work Exercise 3.3 Consider two scenarios, wj with probability , and w2 with probability 3. Suppose that the return

Please show all steps and all work

Exercise 3.3 Consider two scenarios, wj with probability , and w2 with probability 3. Suppose that the return on some security is Kwi = -2% in the first scenario and K,2 = 8% in the second scenario. If the return on another security is K, = -4% in the first scenario, find the return K,2 in the other scenario such that the two securities have the same risk

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