STOCK1: ABT-US. Average annual return=14.14%. Annual Variance=4.29%

STOCK2: AMZN-US. Average annual return= 8.09% Annual Variance=11.06%

STOCK3: C-US. Average annual return=. 7.99% Annual Variance= 16.18%

STOCK4: MSFT-US. Average annual return= 25.17% Annual Variance=4.99%

STOCK5: XOM-US Average annual return= 24.39% Annual Variance= 13.86%

S&P500: SP50. Average annual return= 14.31% Annual Variance= 3.78%

Assume the annualised risk-free rate is 3% .P* annualised expected return = 11.51%P* annualised standard deviation=5.37%

Based on above 1-Calculate P* annualised Sharpe ratio

Given the five individual companies and the S&P 500 combined to create the ideal risky portfolio would have the following weights: ABT-US, STOCK1, with a mass of 0.19 STOCK2: US-Amazon. = 0.17 Weight C-US. Weight = 0.01 for STOCK3 MSFT-US STOCK4, with a weight of 0.25 XOM-US STOCK5 with a weight of -0.06 S&P500: SP50. : 0.35 lbs. Based on above 2-The new P* annualised Sharpe ratio?

3-S&P500 annualised Sharpe ratio?

4-compare P* and new P* performance with S&P500 and make comments on the relative performance, and provide possible explanations