(a) Figure 1 presents the return distributions of stocks A B and C. Briefly outline what this ligure indicates about the risk (standard deviation) and return of each stock whether a risk averse investor prefers stock A, or stock B, or stock C? (3 marks) Figure 1 A 0.1 0.15 (b) Table 1 Asset E(RD) STD(R) COVER,R) 0.10 0.18 0.20 0.30 0.042 0.090 COVER) 0.020 0.060 A B Market (mkt) Risk Free 0.16 0.20 0.060 0.040 0.05 0.00 0.000 0.000 Using the Information in Table 1, calculate the expected return, beta and standard deviation of returns, covariance with the market return for a portfolio that consists of a 45% investment in Asset A and a 55% investment in Asset B. (5 marks) (c) Given the information in Table 1. your answer to (b) and without performing any additional calculations, outline two ways in which an investor can construct a portfolio that will have a smaller standard deviation than the portfolio reported in (b) (2 marks)