Question: please show all work including any formulas and explanations Using the following information to answer question 3 and 4. Walker is also forecasting risk and

please show all work including any formulas and explanations
 please show all work including any formulas and explanations Using the

Using the following information to answer question 3 and 4. Walker is also forecasting risk and return for equity in May. He is looking at stock A, stock B, and a portfolio of both stock A, and B. Will estimates that stock A has 50% chance to have -5.5% in May during the Bust scenario. On the other hand, stock A may run its good streak and has 30% chance to earn a 15% return during the Boom or a 20% chance to earn a 7.5% during the Normal case. Similarly, when Walker forecasts risk and return for stock B, he estimates that B has 50% chance to earn an 1.25% return during Bust, 30% chance to earn a 3.5% return during Boom and a 20% chance to earn a 2% return during Normal in May. 3. Walker wants to form a portfolio by investing equally in A and B. Calculate the expected risk and return for this portfolio a 4. Walker wants to invest more in A and less in B. Thus, he decides that a 30% investment in A and subsequently a 70% investment in B will help him achieve this goal. He has also calculated that the portfolio of 30% Investment in A and the rest in B will earn a 6.95% during Boom, 3.65% during Normal and -0.775% during Bust. Calculate the expected risk and return for this portfolio

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