1. The expected returns on three securities are given in the table below.

Name of Security	Expected Returns (%)
A	12
B	20
C	19

The Variance-Covariance matrix of the returns on the three securities is:

1. Calculate the standard deviation of the returns of each stock
2. Compute the correlation coefficient between the returns on:

1. AA and B
2. A and C

3. Assume a portfolio consisting of the three stocks (A, B, C). Assume an investor invests

20 % in A, 40% in MOE, and 40% in C

1. Calculate the portfolios expected return.
2. Compute the portfolio standard deviation\)