(a)What is the standard deviation of the individual stock returns? What is the covariance? What is the correlation?

(b)Suppose you invest 25% in stock A, and 75% in stock B, what is the mean return and return standard deviation of the portfolio?

(c)Now, suppose the risk-free rate is 0.30%. What is the Sharpe Ratio of the optimal portfolio? Describe the portfolio weights of the optimal portfolio

You observe returns on stocks A and B on the following five dates: Date 1 2 3 4 5 Returns Stock A 3% 2% 1% 0% -1% Stock B 5% 3% 4% -2% 0%