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5. John Cruz is considering investing in two different stocks or creating a stock portfolio. John considers himself to be a rather conservative investor. He

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5. John Cruz is considering investing in two different stocks or creating a stock portfolio. John considers himself to be a rather conservative investor. He is able to obtain forecasted returns for the three securities for the years 2015 through 2021. The data are given in the following table. Year Stock 1 Stock 2 2015 10.00% 14.15% 2016 12.50% 13.75% 2017 14.25% 12.80% 2018 14.75% 12.95% 2019 13.25% 12.10% 2020 12.85% 13.25% 2021 14.05% 12.60% Compute for the standard deviation and coefficient of variation of each stock (2 POINTS EACH) and the portfolio (3 P[OINTS). Which among the stocks three assets will you invest your funds? (1 POINT)

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