Problem 3 (10 points) A. Use the following information to answer the questions below: Security Return(SI) Return(S2) 16% 20% B 12% 25% Risk-free asset return = 4% SI is State-1 and S2 is State-2; Prob(SI) - 0.6; Prob(S2) -0.4 i). What is the expected return on Security A and the expected return on Security B? (2 points) ii). What is the portfolio expected return with 140% of wealth invested in A and the remainder in the risk-free asset via borrowing at the risk-free interest rate? (3 points)