1. Imagine if you want to buy a car worth Rs 2 million. You decide to invest your money with the stock market which offers you an average return of 20% a year. How much do you need to save every month, if you want to buy the car in 3 years.

2. You want to retire early. You have saved 1 million a year for 20 years. You have always invested your money in the stock market which offers an average return of 18% to you. What would be the total amount saved when you retire?

3. What is the expected return and standard deviation of a fair coin where you gain 200 when its heads and lose 150 when its tails?

4.Create a portfolio C with 50% each of stock A and Stock B. (4 Marks)

Expected Returns
Year	Asset A	Asset B
2018	15%	6%
2019	10%	8%
2020	5%	9%

1. What is the expected returns of the portfolio C?

b. What is the expected risk of portfolio C.?