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Assume that you have opportunity to invest 15,000 in one of the following common stock. Year Stock (A) Stock (B) 2019 10% 8% 2018 13%

Assume that you have opportunity to invest 15,000 in one of the following common stock.

Year

Stock (A)

Stock (B)

2019

10%

8%

2018

13%

12%

2017

17%

16%

2016

20%

20%

Then you plan to invest in both stocks (A and B) as a portfolio investment and the weight of investment will be as follow:

Stock

A

B

Weight

60%

40%

Correlation

1

Required: a. Calculate the expected return for both stock b. Calculate the expected risk based on standard deviation for both stock c. Calculate the expected risk based on coefficient variation (CV) d. Interpret which stock that you would like to invest based on risk and return concept e. Calculate the expected return of portfolio f. Calculate the expected risk of portfolio based on standard deviation

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