There are three securities in the market. The following chart shows their possible payoffs: State Probability Return on Return on Return on
of Outcome Security 1 Security 2 Security 3
1 .16 .210 .210 .060
2 .34 .160 .110 .110
3 .34 .110 .160 .160
4 .16 .060 .060 .210
a-1. What is the expected return of each security? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e. g., 32.16).)
a-2. What is the standard deviation of each security? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e. g., 32.16).)
b-1. What are the covariances between the pairs of securities? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 5 decimal places (e. g., 32.16161).)
b-2. What are the correlations between the pairs of securities? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 4 decimal places (e. g., 32.1616).)
c-1. What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. g., 32.16).)
c-2. What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. g., 32.16).)
d-1. What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. g., 32.16).)
d-2. What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 3?
e-1. What is the expected return of a portfolio with half of its funds invested in Security 2 and half in Security 3?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. g., 32.16).)
e-2. What is the standard deviation of a portfolio with half of its funds invested in Security 2 and half in Security 3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. g., 32.16).)