The profits of Industries plc and TinMine plc are affected by the price of tin. when tin prices increase, the costs of Industries rise and their profits fall. However, TinMine plc tends to do...

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Extracted text: The profits of Industries plc and TinMine plc are affected by the price of tin. when tin prices increase, the costs of Industries rise and their profits fall. However, TinMine plc tends to do particularly well when tin prices increase. The following scenario analysis describes the share returns of Industries and TinMine under different economic conditions. Normal Conditions Bull Market Bear Market Tin Crisis Probability 0.4 0.5 0.1 Industries Return 15% 2% -10% TinMine Return 10% -3% 45% Mr Red has 100% of his portfolio in Industries plc. Mrs Green has half of her portfolio in Industries plc and the other half in UK Treasury Bills. The Treasury Bills provide a return of 3% in all scenarios. Doctor Black holds a portfolio invested 50% in Industries plc and 50% in TinMine plc. Required (a) Prepare a table comparing the expected return and risk (expressed as the standard deviation of returns from the expected value) of the portfolios of Mr Red, Mrs Green and Doctor Black. All calculations must be shown in some detail.