Question:

1	30% Company A	26% Company B	47% Company C
2	7%	15%	-54%
3	18%	-14%	15%
4	-22%	-15%	7%
5	-14%	2%	-28%
6	10%	-18%	40%
7	26%	42%	17%
8	-10%	30%	-23%
9	-3%	-32%	-4%
10	38%	-28%	75%

1. Estimate the average return and standard deviation of each company2. If one investor has a portfolio consisting of 50% Company A and 50% Company B, whatare the average portfolio return and standard deviation? What is Sharpe ratio if the riskfreerate is 3.8%?3. If another investor has a portfolio consisting of 1/3 Company A, 1/3 Company B and 1/3Company C, what are the average portfolio return and standard deviation? What is Sharpe ratio if the risk-free rate is 3.8%?

4.What would happen to the portfolio risk if more and more randomly selected stocks were added