Suppose the IBM and Apple have experienced the following stock returns in the last 4 years:

YEAR	IBM %	Apple %
2018	0.15	0.05
2019	0.6	0.09
2020	0.25	-0.14
2021	-0.25	0.2

Required:

1. What are the stocks average returns, the variances, & the standard deviations? Discuss which investment was more volatile by giving reasons? (3 Marks)
2. For the coming year of 2022 we have the below information, and if the probability of the state of economy of the recession is estimated by 50%, what are the Expected Return, Variance, and Standard Deviation of these 2 stocks? If the risk-free rate is 6%, what are the expected risk premium for each stock? Discuss investors prefer which company and why. (5 Marks)

State of Economy (SoE)	IBM %	Apple %
Recession	-16	24
Boom	56	8

3. If an investor equally invests in these 2 stocks, what are the portfolio Expected Return, Variance, and Standard Deviation?