$7$ You are an analyst reviewing Sun Oil $($SO$)$ and Carl's Cafes $($CC$)$ as an investment in either individual stocks or a

portfolio of stocks. Research has provided each company's historical returns in the table below:

A What is the average rate of return for Sun Oil and Carl's Cafes over the $2016$ to $2020$ period? $2$

B Your client Ms$.$ Jacob is considering a portfolio of $50\%$ in each stock. What was the realized rate of

return on the portfolio in each year $(2016-2020)?$

C What would have been the average return on the portfolio return during this period?

D What is the standard deviation for SO$,CC$ and the portfolio?

E Ms$.$ Jacob is a risk averse investor, what should you recommend SO$,CC$ or the portiolio? Explain your

recommendation.