(a) Figure 1 is a stylised plot of the expected return and standard deviation of returns for a variety of stocks. It also includes a plot of the portfolio combinations that produce the minimum standard deviation for a given level of return (solid, curved line). Finally, stocks A, B and Care highlighted (large dots). Based on this figure, discuss why there is no positive risk/return relationship between stocks A, B and C, and highlight why a risk averse investor prefers one of these stocks over the other two. E[R] STD(RA) STD(R)