10-Year U.S govt Bond gives a coupon payment of $100 and $500 is its maturity value. These risk free bonds are currently priced at $1225. The U.S market portfolio return is 10% 16% variance. You are asked to give the report on given companies of U.S stock Market

1) Company A has 10% expected return and 0.16 covariance with stock market.

1) Company B has 15% expected return and 0.24 covariance with stock market.

1) Company C has 5% expected return and 0.08 covariance with stock market.

1) Company D has 9% expected return and 0.12 covariance with stock market.

1) Company E has 4% expected return and 0.04 covariance with stock market.

Analyze investment in these companies