STOCK A: AR=3.6%. SD=22%STOCK B:AR=9.48% SD=29%B)The correlation coefficient between the daily returns of Stock A and B is 0.017806.

Question 3 a Calculate the annual returns and standard deviation of annual returns for the following portfolio (Calculations must be done manually. Show all workings): Portfolio: P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 Stock A 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Stock B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Return ERpi ERP2 ERp3 ERP4 ERps ERP6 ERP7 ERes ERpg ERPIO ERpil S. D. SDP1 SDP2 SDP3 SDP4 SDPs SDP6 SDP7 SDPg SDpg SDP10 SDPIl (22 marks)