Assume that you recently graduated and you just landed a job asa financial planner with the Cleveland Clinic. Your firstassignment is to invest $100,000. Because the funds are to beinvested at the end of one year, you have been instructed to planfor a one-year holding period. Further, your boss has restrictedyou to the following investment alternatives, shown with theirprobabilities and associated outcomes. State of Economy ProbabilityT-Bills Alta Inds. Repo Men American Foam Market Port. Recession0.1 8.00% -22.0% 28.0% 10.0% -13.0% Below Average 0.2 8.00% -2.0%14.7% -10.0% 1.0% Average 0.4 8.00% 20.0% 0.0% 7.0% 15.0% AboveAverage 0.2 8.00% 35.0% -10.0% 45.0% 29.0% Boom 0.1 8.00% 50.0%-20.0% 30.0% 43.0% Barney Smith Investment Advisors recently issuedestimates for the state of the economy and the rate of return oneach state of the economy. Alta Industries, Inc. is an electronicsfirm; Repo Men Inc. collects past due debts; and American Foammanufactures mattresses and various other foam products. BarneySmith also maintains an "index fund" which owns a market-weightedfraction of all publicly traded stocks; you can invest in that fundand thus obtain average stock market results. Given the situationas described, answer the following questions. a. Calculate theexpected rate of return on each alternative. b. Calculate thestandard deviation of returns on each alternative. c. Calculate thecoefficient of variation on each alternative. d. Calculate the betaon each alternative. e. Do the SD, CV, and beta produce the samerisk ranking? Why or why not? f. Suppose you create a two-stockportfolio by investing $50,000 in Alta Industries and $50,000 inRepo Men. Calculate the expected return, standard deviation,coefficient of variation, and beta for this portfolio. How does therisk of this two-stock portfolio compare with the risk of theindividual stocks if they were held in isolation?