QUESTION 3

You are considering the two securities listed below.

	Returns
Probability	Securities A	Securities B
25%	13%	7%
50%	15%	13%
25%	17%	33%

Using these stocks, you have identified two investment portfolio alternatives:

Alternative 1	100% Stock A
Alternative 2	40% Stock A, 60% Stock B

1. Calculate the expected return for each security.

2. Calculate the standard deviation for each security

3. Which security will you choose to put in your portfolio? Explain.

4. Calculate the covariance t for the above securities.

Dear sir don't give hand writing thank you and please give all answer