question 1.120 Marks Hefer to the below information and answer the question the follow considering to invest as a way to diversify and it is considering two products, Product A and the other Product B. it is being planned to be implemented in the year 2021 Each product's return ZP Limited has been in business since the year 2000. In view of the current COVID pandemic it is depends on each year's state of economy. The estimated average rates of return and probability as Probability of State of Econ Rate of Return of state Occurs Product Product B 0.25 -2296 0.30 2896 33% 0.20 309 shown in the table: State of Economy Recession Average Boom 4598 it. A. Find each product's expected rate of return, variatice, standard deviation, and coefficient of variation. (5 marks] B. Which product would you recommend for investment explain [2marks) C Assume that ZP is going to invest one third of its available funds in Product A, and two third in Product B. Answer the below question as part of "C What is the expected return on the portfolio by reformulating the table above (3marks) What are the variance and standard deviation of the portfolio by reformulating the table above? (3 marks) (Do not use Portfolio Formula). iii. What are the covariance and correlation coefficient between product A and B? (Smarks) (Strictly use the Approach you were taught in class) Assume that the beta for Product A is 0.8 and that of Product Bis 14. The risk free rate is 9%. What is the expected return of each of the two securities using the CAPM if the market return is 157 [3 marks) ZP led decides to invest in the two assets basing on the ratios in Cabove. What is the portfolio Beta and Portfolio return [4 marks] iv. v