Question: In this assignment, you will complete the following: o Interpret the risk and return characteristics of a portfolio. 0 Articulate the concept of the cost

In this assignment, you will complete the following: o Interpret the risk and return characteristics of a portfolio. 0 Articulate the concept of the cost of capital. The Risk and Return Characteristics of a Portfolio You are considering investing in three different stocks or creating three distinct twostock portfolios for your company described in Part 'I of this project. You are a conservative investor. You have obtained historical returns for the three securities for the years 2015 through 2021. The data are given in the following table. In any of the possible twostock portfolios. the weight of each stock in the portfolio will be 50%. The three possible portfolio binations are AB, AC. and BC. Create a spreadsheet similar to the table above to ll out the following information: com a b c d . Calculate the average return for each individual stock. . Calculate the standard deviation for each individual stock. . Calculate the average returns for portfolios AB, AC, and BC. . Calculate the standard deviations for portfolios AB. AC, and BC. Respond to the following two questions below the table you create: 1. Would you recommend that your company invest in the single stock Aor the portfolio consisting of stocks A and B? Explain your answer from a ris kreturn viewpoint. 2. Would you recommend that your company invest in the single stock B or the portfolio consisting of stocks B and C? Explain your answer from a ris kreturn viewpoint

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