Question: please write the steps, tysm! Problem 3 (30 points) The following Table provides a prospective analysis of Sarp Industries Company. Scenario Probability Return Bad 0.2

 please write the steps, tysm! Problem 3 (30 points) The following

please write the steps, tysm!

Problem 3 (30 points) The following Table provides a prospective analysis of Sarp Industries Company. Scenario Probability Return Bad 0.2 -2% Most likely 0.7 3% Good 0.1 5% a. Calculate the expected rate of return of Sarp Industries Company. b. Calculate the standalone risk of Sarp Industries Company. Problem 4 (30 points) The following Table displays historical data for shares alpha and gamma returns. Year Alpha Gamma 2016 0.08 0.10 2017 0.10 0.05 2018 0.07 0.12 2019 0.06 0.08 a. Calculate the standalone risk for each share. Show steps and comment the results. b. You invested 1200 KD in share Alpha and 800 KD in share Gamma. Based on this information, create a portfolio, calculate the annual returns accordingly and find its standalone risk. Comment the result obtained

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