Question: Question 2 [Total 10 Marks] Data about returns for both security X and security Y are provided below: SECURITY X SECURITY Y Return Probability Return

Question 2 [Total 10 Marks] Data about returns
Question 2 [Total 10 Marks] Data about returns for both security X and security Y are provided below: SECURITY X SECURITY Y Return Probability Return Probability 30% 0.10 -20% 0.10 20% 0.20 10% 0.20 10% 0.40 20% 0.40 5% 0.20 30% 0.20 -10% 0.10 40% 0.10 You are required to calculate: (a) The Expected Return of Security X and Security Y [2 marks] (b) The Standard Deviation of Return for Security X and Y [3 marks] The Expected Return of the Portfolio of X and Y, combined with equal weights [2 marks] (d) The Standard Deviation of the Return of the Portfolio if the two securities are independent (unrelated). [3 marks]

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