Question No 2. (Marks 8) Consider the following information: State economy of Probability of Rate of return if state occurs state of economy Stock A Stock B Stock C Boom 0.35 0.08 0.03 0.33 Bust 0.65 0.14 0.25 -0.07 1. Your portfolio is invested 30% each an A and B, and 40% in C. What is the expected return of the portfolio? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, 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. * 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