Jennifer, a close family friend has approached you to help her determine which of the two common stocks she should invest in.

Proven Limited Scotia Investment

Probability Return Probability Return

0.125 18.5% 0.20 -15%

0.350 9.75% 0.20 16%

0.525 36.0% 0.30 17%

0.30 -8%

Required: a) Calculate the expected returns of the Proven Limited Stock (2.5 marks)

b) Determine the risk (standard deviation) and return of the Proven Limited Stock

C). Calculate the expected returns of stock the Scotia Investment

D). Determine the risk( standard deviation) and return of the Scotia Investment.

e) Which of the two stocks would you invest in?

F) Your friend Jeneifer, Has decided that she will invest and additional $100,000 of her savings in the following stocks:

Company Percentage of Investments Expected rate of return

A 55% 15%

B 25% 30%

C 20% -4%

Required;

What rate of return should your friend Jennifer expects to receive on her portfolio?