You just graduated with MSc in Procurement from the University of Professional Studies and are employed by EDC Investments Ltd, an investment firm in Ghana. Paul Kwame Mante, an illiterate businessman, visited your firm for a piece of investment advice and possibly make some investments. Although an accomplished businessman, he was advised by his brother to buy some shares on the Ghana Stock Exchange in other to diversify his portfolio. He is considering an investment in either FanMilk or GCB. The historical percentage returns for the two companies are shown below for the period 2017 2021.

	Stock Returns %
Year	FanMilk Ghana Limited	Ghana Commercial Bank Limited
2017	12%	18%
2018	17%	28%
2019	22%	43%
2020	12%	28%
2021	24%	36%

1. Use the data to compute the average (arithmetic) return for each stock.
2. Compute the standard deviation for each stock.
3. Calculate the covariance between returns of the two stocks.
4. Compute the correlation coefficient between the returns of the two stocks.
5. Compute the average return of a portfolio made up these two assets if Mr mante decides to invest 60% of his funds in FanMilk ltd and the remaing 40% in Ghana Commercial Bank (GCB) stock.
6. Compute the standard devation of the portfolio in (e).