Question: please solve it in detail. Especially for (a) (iii), how to calculate Expectation and Variance of the portfolio? 3. (a) Two securities have the following

please solve it in detail. Especially for (a) (iii), how to

please solve it in detail. Especially for (a) (iii), how to calculate Expectation and Variance of the portfolio?

3. (a) Two securities have the following possible returns Security 1 Security 2 States Return ProbabilityReturnProbability 0.5 3.5 1.5 0.6 0.3 0.1 0.6 0.3 0.1 4.5 2 2.5 1.5 Calculate the mean and variance of returns for each security and the covariance between them. (i) (i) What is the minimum risk that we can achieve in a portfolio that (iii) At intervals of 20%, plot the feasible set of mean-variance contains only the two securities above? combinations of return and risk for a portfolio that consists of only the two securities above. Make sure to identify anything of particular interest

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