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BBF201/03 INTRODUCTION TO FINANCIAL MANAGEMENT SEPT 2022 ASSIGNMENT 2 QUESTION 3 (25 MARKS) a) Find the expected return for each of the stock. (6 marks)

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BBF201/03 INTRODUCTION TO FINANCIAL MANAGEMENT SEPT 2022 ASSIGNMENT 2 QUESTION 3 (25 MARKS) a) Find the expected return for each of the stock. (6 marks) b) Compute the variance and standard deviation for stock A, B and C. Show your working. (12 marks) c) i) Identify which pair of the combinations A, B and C shows a positive correlation. ( 2 marks) ii) Explain which pair shows a negative correlation. (2 marks) iii) Justify how can the risk of the above combination of stocks be minimized

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