You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period.

1. Calculate the return and risk (standard deviation) of each stock.

2. Explain the relation (positive or negative) between risk and return based on your answers in part (1).

3. Calculate the correlation coefficient between (a) Crown and Tencent and (b) Tencent and CBA.

4. Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Crown and 50% in Tencent.

5. Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 40% in CBA and 60% in Tencent.

6. Which portfolio (parts 4 or 5) provides better diversification? Explain your answer(s).

Noted, It is important to show workings, such as formula(e) and input of each variable in the formula(e) Please ensure workings are presented clearly. Please manual calculations. Thanks. with math formulas

Year 2010 2011 2012 2013 2014 2015 2016 2017 Crown 7.76 8.57 8.09 11.59 16.68 13.61 12.27 11.4 Tencent 29.04 40.40 37.94 54.28 108.70 132 144.90 204.40 463.60 346 Commonwealth (CBA) 53.63 52.15 50.39 64.10 73.83 88.85 78.67 81.66 78.87 69.91 2018 2019 13.25 11.95