1. Consider the following three stocks (U, V & W) with historical rates of returns. The figures are in percent.

Year	U	V	W
1	9.06	0.78	12.55
2	(5.14)	(0.87)	(5.90)
3	3.99	0.84	0.97
4	(2.86)	(2.06)	(4.42)
5	6.69	(2.30)	10.07
6	(4.17)	(2.16)	(7.21)
7	1.60	2.82	12.90
8	(2.74)	(7.02)	(3.68)
9	5.63	20.96	7.19
10	0.43	4.90	0.76

1. calculate average returns and standard deviations for each stock. (Use N as divisor)
2. calculate correlations and covariances between each pair of stocks.
3. Assume Mr. Jackson formed a portfolio (J) by combining the three stocks equally weighted. Calculate average return and standard deviation for portfolio J.
4. Assume Mr. Laxmikantham formed a portfolio (L) by combining the three stocks in the following weights: 20% in U, 50% in V and 30% in W. Calculate average return and standard deviation for portfolio L.
5. Which investor is more risk averse, Mr. Jackson or Mr. Laxmikantham? Show work.