$1-$ Samer plans to invest in Stock A and Stock B$.$ The correlation between A and B is $0\mathrm{.}6.$ The expected returns are $15\%$ and $18\%$ for stocks A and B$,$ respectively. The standard deviation are $0\mathrm{.}111$ and $0\mathrm{.}235$ for Stocks A and B$.$ Find the expected return and the standard deviation of a portfolio with $0\mathrm{.}4$ of Samer's funds in Stock A$.$

$2-$ A stock has returns of $3\%,18\%,-24\%$ and $16\%$ for the past four years. Based on this information, what is the standard deviation of this stock?

$3-$ The following historical returns data for the last $7$ years have been gathered for stock A and the market rate of return:

$\backslash$table$[[$Year$,$Stock A $\%,$Market rate of return $\%],[2008,14,10],[2007,11,12],[2006,12,11],[2005,8,6],[2004,14,15],[2003,12,12],[2003,15,14]]$

How would you estimate the risk of this stock? How could you explain this to the investor who has no specialized knowledge on those issues so that he trusts you?

What strategic trading investment would you suggest to this investor regarding stock A$?$