(i) Find the expected return for each of the stock. (ii) Compute the variance and standard deviation for stock A, B and C. Show your working.

(iii) Justify how can you minimize the risk of the above combination of stocks.

The following shows the expected percentage returns on three stocks over the next six years: Stock Year A B 2 5 1 10 8 5 Percentage Return (%) 3 4 6 8 4.80 6.4 12 10 5 12 9.6 6 15 12 6 4 10