The stock of XYZ limited performs well relative to other stocks during recessionary periods. The stock of ABC limited on the other hand does well during growth periods. Both the stocks are currently selling for Shs 100 per share. You assess the shilling return (dividend plus price) of these stocks for the next year as follows:

ECONOMIC CONDITIONS
	HIGH GROWTH	LOW GROWTH
RETURN OF STOCK OF XYZ LTD
RETURN OF STOCK OF ABC LTD

Required : Calculate the expected return and standard deviation of investing

Shs 1000 in equity stock of XYZ ltd

Shs 1000 in the stock of ABC ltd

Shs 500 each in the equity stock of XYZ ltd and ABC ltd

Comment on the above results.