The following is a probability distribution for returns on a security A and a proxy for the market, M. State 1 2 3 4 Probability 10% 40% 40% 10% RA 16% 7% 12% -8% RM 10% 18% -5% 9% a. Calculate the expected returns on security A and the market. b. Calculate the variances and the standard deviations of security A and the market. C. Calculate the coefficient of variations (CV) for security A and the market. Does A initially seem to be more or less attractive than a market portfolio? Why? What other consideration might affect your answer and how? d. i) What is the probability that the actualized return on security A will be equal or less than 3% in the coming investment period? ii) What is the probability of actually losing 4% or more on the market portfolio in the coming investment period? e. Calculate the covariance between A and M. f. Calculate the beta of security A (4 decimal places). What is the beta of the market? g. Calculate the correlation coefficient between security, A. and the market. h. Construct a portfolio in which 40% in asset A and 60% in M calculate the expected return and the standard deviation of the portfolio, P. i. Calculate the benefit of diversification of portfolio, P