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The table below presents year end stock prices for Stocks A, B, C and D. These stocks do not pay dividends. Date Stock A Stock

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The table below presents year end stock prices for Stocks A, B, C and D. These stocks do not pay dividends. Date Stock A Stock B Stock C Stock D Dec 31, 2015 S60 $12 S560 S328 Dec 31, 2016 S64 S10 S576 S310 Dec 31, 2017 S67 S12 S600 S245 Dec 31, 2018 S76 $13 S589 S263 Construct the vector of the arithmetic mean returns and the variance-covariance matrix. Round all the calculations to five decimal points. (Hint: It will take time) (60 marks) Calculate the return and risk of the portfolio, if 25% of the funds is invested in cach stock. (14 marks)

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