The information provided below :

Year	Stock A Returns	Stock B Returns
2015	12.25%	20.28%
2016	17.01%	8.75%
2017	13.50%	17.80%
2018	8.51%	19.66%
2019	16.85%	4.03%

1. Calculate the average return and standard deviation of returns for each stock over the past five years. Which stock would you prefer to own? Would everyone make the same choice? (5 marks)
2. Calculate the correlation coefficient between the two stocks. Does it appear that a portfolio consisting of stock A and B would provide good diversification? (5 marks)
3. Calculate the annual returns that would have been achieved had you owned a portfolio consisting of 50% in stock A and 50% in stock B over the past five years. (5 marks)
4. Calculate the average return and standard deviation of returns for the portfolio. How does the portfolio compare with the individual stocks? Would you prefer the portfolio to owning either of the stocks alone? (5 marks)
5. Create a chart that shows how the standard deviation of the portfolios returns changes as the weight of stock A changes. (2 marks)
6. Using the Solver, what is the minimum standard deviation that could be achieved by combining these stocks into a portfolio? What are the exact weight (3 marks)