Question 2 (10 marks) The following probability distribution relating to returns on an individual security and the market portfolio are given: State Probability Return on a Return on a selected Security, % Market Index, % Boom 0.10 31 25 Good 0.14 23 17 Average 0.31 10 14 Poor 0.25 3 5 Crash 0.20 -15 -5 Required: Calculate the expected return and standard deviation of returns for the market index portfolio [Answer and show workings here) Expected Return: 3 marks [ ] I Variance: 3 marks C ] Standard Deviation: 4 marks C ]