3. You are considering an investment in the stock market and have identified two potential stocks (XYZ and ABC ) to purchase. The historical returns for the past five years are shown in the table below. a) Calculate the avenge return and standard deviation of returns for each stock over the past five years. Axeed on this information alone, which soxck would you prefer to own?' Would everybody make the same dicice? b) Calculate the correlation coefficient between the two stocks. Does it apperi that a portfolio consisting of XYZ and ABC would provide good diversification? c) Calculate the anmual retums that would towe been achievad had you owned a portfolio consisting of 50% in XYZ and 50% in ABC over the past five yeare d) Calculate the avenge return and standard deviation of returns for the portfolio. How does the portfolio conpare with the individual stock? Would pou prefer the portfolio to owning either of the stocks alone? e) Create a chart that show how the standand destation of the portfotios returns changes as the weight of XYZ changes. f) Using the Solver, what is the minimum standard deviation that could be achieved try combining these stocks into a portfolio? What are the exact weighe of the stocks that tesult in this minimum standard deviation? 4. Replicate the model below the way it is