Richard must decide how to allocate the capital in his portfolio. Richard has $5,000 available to invest. He finds the rates of return for four stocks for the past 12 years and the results are given below. Richard plans to invest 25% of his funds in each stock.

b) The expected return of Richard's porfolio is:

c) The standard deviation of Richard's portfolio return is:

Year Stock A (%) Stock B (%) Stock C (%) Stock D (%)

1 0.000 0.110 0.810 -0.870

2 19.920 5.090 -4.170 29.010

3 25.800 6.560 -5.640 37.830

4 25.800 6.560 - 5.640 37.830

5 -23.400 -5.740 6.660 -35.970

6 34.080 8.630 -7.710 50.250

7 50.680 12.780 -11.860 75.150

8 26.700 6.785 -5.865 39.180

9 7.200 1.910 -0.990 9.930

10 21.920 5.590 -4.670 32.010

11 -11.340 -2.725 3.645 -17.880

12 -7.400 -1.740 2.660 -11.970