Year Stock A Stock B Stock C

2015 10% 10% 12%

2016 13 11 14

2017 15 8 10

2018 14 12 11

2019 16 10 9

2020 14 15 9

2021 12 15 10

In any of the possible two-stocks portfolios, the weight of each stock in the portfolio will be 50%. The 3 possible portfolio combinations are AB, AC, and BC

Please help me to answer the following questions.

A) Calculate the expected returned for each individual stock.

B) Calculate the standard deviation for each individual stock.

C) Calculate the expected returns for portfolios AB,AC and BC.

D) Calculate the standard deviations for portfolios AB,AC and BC.

E) Would you recommend that Jane invest in the single stock A or the portfolio consisting of stocks A and B? Explain using the risk -return view-point.

F) Would you recommend that Jane invest in the single stock B or the portfolio consisting of stocks B and C? Explain using the risk -return view-point.