1- Richard must decide how to allocate the capital in his portfolio.

Richard has

$36,000

available to invest. He finds the rates of

return for four stocks for the past 12 years and the results are given

below. Richard plans to invest 25% of his funds in each stock.

Year	Stock A (%)	Stock B (%)	Stock C (%)	Stock D (%)
1	-6.370	-0.930	2.580	-10.440
2	32.390	8.760	-7.110	47.700
3	26.490	7.285	-5.635	38.850
4	28.490	7.785	-6.135	41.850
5	-18.570	-3.980	5.630	-28.740
6	33.090	8.935	-7.285	48.750
7	71.790	18.610	-16.960	106.800
8	26.930	7.395	-5.745	39.510
9	14.030	4.170	-2.520	20.160
10	34.390	9.260	-7.610	50.700
11	-10.450	-1.950	3.600	-16.560
12	-2.570	0.020	1.630	-4.740

a) How much will he invest in each stock?$

b) The expected value of Richard's portfolio is: %

c) The standard deviation of Richard's portfolio is:%