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You are responsible for managing a portfolio of two investments for the coming year. You have read all of the latest finance and according to your favourite reputable financial analysts, the probability of another recession occurring 40% and the probability of booming my the economy will be behaving normally Common shares of Form A are expected to earn a return of 30% during boom time, but lose 12 during a rin. Normally, the form common shares would earn a 20% return. The price of Firm's common share is expected to decline 15% during boor time, but increase by cung Normally the firm's common shares would em 10% return 3. Calculate the expected return on the common shares of Fim A b. Calculate the expected return on the common shares of Calculate the expected return of a portfolio 40% invested in shares of Fem A and the remainder in shares of form. d. Calculate the standard deviation of expected returns for Firm A? c. Calculate the standard deviation of expected returns form? f. Calculate the standard deviation of expected retums for a portfolio 40% invested in shares of mA and the remainder in the + a. Compare the return versus noko a 100% investment in firm's shared with the return versus niskor the portfolo consisting of invested in shares or the portfelle conting of 404 invested in and on why and 60 in Form Which would you prefer, 100% invested in

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