Calculate the expected returns, variances, standard deviations, coefficients of variation of each investment, also calculate covariances and correlation coefficients between A and B, A and C, B and C, A and D.

Market Condition	Probability	A	B	C	D
Good	30%	14%	4%	12%	7%
Average	40%	10%	10%	10%	7%
Poor	30%	6%	16%	4%	7%

1. If you want to select two of them to form a portfolio, which two are the better candidates? Why?

2. If you evenly distribute your money into these two investment opportunities, what is the expected return, variance, standard deviation and coefficients of variance of your portfolio?

3. Compare the risk of your portfolio with the risk of each component stock and explain.