Question 1:

Following table reports the annual returns data for stock A, stock B, market portfolio M and risk-free rate RF during the past 12 years.

Year	A %	B %	M%	RF %
1	-2.54	2.3	-0.9	0.5
2	3.56	5.86	2.86	0.5
3	-4.54	-2.24	-5.44	0.5
4	2.94	5.24	6.2	0.5
5	1.54	-2.3	-5.5	0.5
6	4.54	6.84	4.84	0.6
7	2.54	3.84	-3.2	0.5
8	4.54	-12.3	-15.5	0.7
9	2.94	6.24	7.24	0.5
10	3.21	3.1	3.4	0.4
11	4.42	2.21	2.18	0.5
12	2.11	2.1	3.45	0.5

If Mr. John owned a portfolio with 50% of stock A, 30% of stock B and 20% of market portfolio at the beginning of year 1. Calculate the arithmetic average returns, the return standard deviations, and the geometric average returns for the Mr.Johns portfolio. ( 3 marks)