Jane is considering investing in three different stocks or creating three distinct two- stock portfolios. Jane considers herself to be a rather conservative investor. She is able to obtain forecasted returns for the three securities for the years 2015 through 2021. The data are as follows:

Year Stock A Stock B Stock C

2015 10% 10% 12%

2016 13 11 14

2017 15 8 10

2018 14 12 11

2019 16 10 9

2020 14 15 9

2021 12 15 10

In any of the possible two-stock portfolios, the weight of each stock in the portfolio will be 50%. The three possible portfolio combinations are AB, AC, and BC.

Create a spreadsheet similar:

a. Calculate the expected return for each individual stock.

b. Calculate the standard deviation for each individual stock.

c. Calculate the expected returns for portfolio AB, AC, and BC.

d. Calculate the standard deviations for portfolios AB, AC, and BC.