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20% 1. You are given the following data Year HPR of Stock A HPR of Stock B HPR of Stock C 2019 10% 20% 10%

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20% 1. You are given the following data Year HPR of Stock A HPR of Stock B HPR of Stock C 2019 10% 20% 10% 2020 15% 15% 15% 2021 20% 10% (1) Calculate expected rate of return for each stock (2) Calculate standard deviation for each stock (3) Calculate coefficient of variation for each stock. If you will choose only one stock for investment, which stock will you choose? Why? (4) How much is correlation coefficient between A and B? between A and C? (Use Excel to find correlation coefficient between two stocks) (5) Calculate expected rate of return and standard deviation for the portfolio A + B. Assume you invest equal proportion (50%) in each stock (6) Calculate expected rate of return and standard deviation for the portfolio A +C. Assume you invest equal proportion (50%) in each stock (7) Which portfolio do you recommend? Why

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