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Explain your answer in depth - show formulas and all relevant stuff Ms....

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Finance

Explain your answer in depth - show formulas and all relevant stuff

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Ms. Smith wants to invest in two securities, ABC and PQR, and the relevant information is below: Probability State of the Econom Bear Moderate Bull Return on ABC (90) | Return on PQR (96) 0.25 0.5 0.25 1590 590 20% 4% 4% 4% Calculate expected returns and standard deviations of two securities a. b. Ms. Smith shorts $1,000 of PQR and invests all proceeds from this short sale as well as S3,000 of her own money into ABC. What is the expected return and the standard deviation of her portfolio

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