answer the question below

Question 3 Currently you own shares of stock in company A and are considering adding some shares in either company B or company C. You have collected the following information about the shares of company A, company B and company C. Company A Company B Company C Expected Return 0.15 0.1 0.4 Standard Deviation 0.12 0.06 0.35 The correlation between the shares of company A and company B is 0.5, while it is -0.5 between the shares of company A and company C. Determine the return and standard deviation if you decide to invest 50 percent either in shares of company B or company C. As a risk averse investor, which company will you decide to invest in your portfolio, justify your answer? (10 marks)