Suppose you want to create a portfolio of two stocks; Stock A in the banking industry and stock B in the engineering industry. Price and their respective dividend in the last few years are given below

	Price of A	Dividend	Price of B	Dividend	Market
2015		20	50		5000
2016		15 50% stock 48		100% cash
2017		18	50		5300
2018		19	51		5400
2019		21	10%	53 5500

5200

Find the risk and return of the two stocks. Now combine a portfolio using the two stocks and find the optimal portfolio risk and return of those two stocks.

Now assume that risk free rate is 6%. Find the sharp ratio of the portfolio you have constructed.

Assume that beta of stock A is 1.2 and beta of stock B is 0.5. Find the Treynor ratio of the portfolio. Comment whether you have underperformed the market or over performed the premarket in terms of sharp ratio and treynor ratio.