The table below provides the possible returns for three securities

Economics state	Probability	Bing-Yu	Bunga	Bhavna
Growth	30%	15%	12%	11%
Stagnant	45%	5%	6%	4%
Recession	25%	-8%	-3%	1%

(a) You wish to invest RM28,000 in Bing-Yu, RM40,000 in Bunga, and RM12,000 in Bhavna. What is each securitys portfolio weight? (1.5 marks)

(b) What are the possible returns for your investment portfolio under each of the three economic states? (1.5 marks)

(c) What are the expected return and standard deviation of returns for your investment portfolio? (4 marks)

(d) If the risk-free interest rate is 4% and the market expected rate of return is 8%, what is the beta of your investment portfolio, assuming that the portfolio is fairly priced? (2 marks)

(e) If the portfolios beta is actually 0.4, should you invest in that portfolio? Justify your decision. (1 mark)