Question
The following shows the expected percentage returns on three stocks over the next six years: Stock Year A B C Required: (i) (ii) 1
The following shows the expected percentage returns on three stocks over the next six years: Stock Year A B C Required: (i) (ii) 1 10 8 5 2 5 4 10 Percentage Return (%) 3 6 4.80 12 Find the expected return for each of the stock. 4 8 6.4 10 5 12 9.6 6 6 15 (iii) Justify how can you minimize the risk of the above combination of stocks. 12 6 (6 marks) Compute the variance and standard deviation for stock A, B and C. Show your working. (15 marks) (4 marks)
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