Needed help with part iii) if i could get working on how its solved that would be greatly appreciated.

1. An investor invested 60% of his money in Stock A and 40% in stock B and constructed a portfolio. The return data for both stock A and B are given below: Year Return A (%) Return B (%) Weight=0.60 Weight=0.40 2009 0.52 1.65 2010 5.21 2.15 2011 7.23 0.25 2012 1.22 5.32 2013 3.22 3.12 2014 5.96 4.26 (i) Calculate the sample expected return and standard deviation for both Stock A and Stock B separately. (0.5*4=2 marks) (ii) Calculate the correlation coefficient between the two stocks. (iii) (1 mark) Calculate the portfolio expected return and standard deviation using the (iv, answers from part (i) and (ii) (2 marks) Will this selection of the above portfolio reduce the risk efficiently? Please explain with proper reason. (0.5_1.5=2 marks)= >rPr, (expected return where there is a discrete probability distribution of returns) 1=1 O, = E(r, -r)?Pr; (standard deviation of returns where there is a discrete probability i=1 distribution of returns) r = r = Sample mean; H, = N 1 i=1 N r, = Popultion mean i= 1 N E(1; - H, )2 S. = 1=1 n-1 (sample standard deviation(sd)) and of = 1 1=1 N (population sd) Coefficient of Variation=CV = x x100% = sd x 100% mean (Standard deviation of returns to a portfolio of 2 assets) Sit W 2 5 2 + 2 W , W 2 1 1,2 5,52 (for Sample) op = \wo? +wo2 +2w,w2 P1,2 0102 (for Population) r; = RF + B,(Im - RF) (security market line)