Question: 2. Consider the following data relating to three stocks. (a) Find out the expected risk and return of each stock - A, B and

2. Consider the following data relating to three stocks. (a) Find out

2. Consider the following data relating to three stocks. (a) Find out the expected risk and return of each stock - A, B and C. [4.5 MARKS] (b) Find the expected risk and return of a Stock Portfolio of all the three stocks in equal proportion. [3 MARKS] (c) Using a suitable measure, indicate which amongst the portfolio or each of the three stocks gives better performance. [2.5 MARKS] Economic Probability Returns from Stocks Scenario A B C Boom 40% 25% 40% 30% Normal 40% 10% 20% 10% Recession 20% -10% -15% -5%

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