Dr. INVESTCO a young CEO who holds an MBA from the MINI MOUSE University understands completely the concept of International Diversification and especially the concept of risk minimization. However, he/she forgot all the formulae and cannot compute the following risk-return results.

Please help him/her to compute the following relationships:

TIME R [Nestle] R [Myers] Probability

2016 14% 35% 0.2

2017 17 24 0.3

2018 16 28 0.3

2019 19 32 0.2

a. Calculate the Expected Returns of the two Multinational stocks.

b. Calculate the Variances of the two Multinational stocks.

c. Calculate the risks of the two Multinational stocks and draw the Normal Distribution Curves.

d. Calculate the Covariance for the two Multinational stocks.

e. Calculate the Correlation Coefficients of the two Multinational stocks.

f. Calculate the beta of the two Multinational Stocks. Are the Stocks Aggressive or Defensive? Carefully explain your answers.