Consider the returns for the following stocks.

Year	Loser Inc	Winning Inc
2010	-5	55
2011	15	25
2012	20	25
2013	35	12
2014	45	-7

7a.Calculate (by hand) the mean and standard deviation of each stock. If you are rational and risk-averse, which stock would you choose if you were choosing only one? (10 points). Why?? Show your work!

b.Calculate (by hand) the mean, variance and standard deviation of a portfolio consisting of 50% Loser and 50% Winning-Is-Us.

c.The standard deviation of the portfolio should be lower than the average standard deviations. Why? Which statistic drives this phenomenon? (10 points.) Bonus: Whats the specific, quantifiable benefit of holding these two stocks