Dear Tutor,

Need your kind help as below question in details, inorder for me to understand how it works.

Your kind help / assistance much appricated.

Thank You

QUESTION 2 (35 MARKS)

Jason is considering investing in three different stocks or creating three distinct two stock portfolios. Jason considers himself to be a rather conservative investor. He is able to obtain forecasted returns for the three securities for the years 2015 through 2019. The data are given in the following table.

Historical Return

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%
Weight	50%	50%	50%

Question 2a)

Find the expected return for each individual stock. Show all your workings. (10 marks)

Question 2b)

Calculate the standard deviation for each individual stock. Show all your workings. (18 marks)

Question 2c)

Compute the expected returns for portfolios AB, AC, and BC. Show all your workings. (7 marks)