Question: The table below provides the possible returns for three securities - Bing-Yi, Bunga, and Bhavna: Economic ProbabilityBing-Bunga Bhavna state Yu Growth 30% 15% 12% 11%

The table below provides the possible returns for three securities -

The table below provides the possible returns for three securities - Bing-Yi, Bunga, and Bhavna: Economic ProbabilityBing-Bunga Bhavna state Yu 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 security's 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)

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