Question No 2. (Marks 10) Use the data set which is labeled below: Stock A Stock B Stock C 7% 80% 13% According to the information below, answer the following questions. The investment shares in stocks A, B and C are presented in Excel opposite your name in the columns of Question 2. State of Economy Normal Recession Probability of Rate of Return is State Occurs State of Economy Stock A Stock B Stock .87 13.4% 17.6% 9.3% .13 2.2% -28.5% 11.2% 1. What is the portfolio's expected return? (Marks 3) 2. What is the variance of the portfolio and standard deviation? (Marks 3) 3. If you have to choose only one type of securities (stock A, B or C) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. (Marks 4) * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. *Write your answers after each question. * Be careful when rounding. Leave two decimal places