. Use the table below to answer the following questions. State of economy Good Bad Probability of state 0.3 0.7 Market return (Rm) 8% -2% Security 1 return (R1) 5% -3% Security 2 return (R2) 3% 3% a. Find the expected market return (E[Rm]), expected securities return (E[Ra], E[R2]), and variance of the market return (Var[Rm]). b. Compute the covariance of the returns between market and Security 1 (Covm1) and beta of Security 1 (B1). c. Compute the covariance of the returns between market and Security 2 (Covm.2) and beta of Security 2 (B2). What kind of asset is Security 2? d. Circle the correct words that make the following sentence a TRUE statement. When the market return goes up, Security 1 return (goes up, goes down, remains constant] by [more, less, (remains constant)] than the market, and Security 2 return [goes up, goes down, remains constant] by [more, less, (remains constant)] than the market