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: CC Return (5.00%) 2016 SO Return (20.00%) 2017 42.00 15.00 2018 20.00 (13.00) 2019 2020 (8.00) 25.00 50.00% 12.00 AB What is the average rate of return for Sun Oil and Carl's Cafes over the 2016 to 2020 period? 2 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)? What would have been the average return on the portfolio return during this period? What is the standard deviation for SO, CC and the portfolio? 5 1 3 Ms. Jacob is a risk averse investor, what should you recommend SO, CC or the portfolio? Explain your recommendation. 4 CDE