Discuss the below:
Miss Maple is considering two securities, A and B, with the relevant information given below:
Q: State of Economy Probability Return on Security A Return on Security B
Bear 0.4 3.0 % 6.5%
Bull 0.6 15% 6.5%
a. Calculate the expected return and standard deviation of each of the two securities.
b. Suppose Miss Maple invested $2,500 in Security A and $3,500 in security B. Calculate the expected return and standard deviation for her portfolio.