The table below contains probability distribution of returns for three stocks: A, B, and C.

prob	A	B	C
0.1	-5	15	5
0.2	15	20	10
0.2	30	10	15
0.3	20	25	20
0.1	25	0	30
0.1	50	20	40

Make the necessary calculations and rank the stocks from a risk-averse investors point of view.

Calculate expected return and standard deviation of an equally weighted portfolio of the three stocks.

2. Assume the single index model explains stock returns. The index rate of return is 10% and its standard deviation is 12%. Estimates of SIM parameters for two stocks are given below.

Stock			e
H	2	1.5	4
J	3	0.9	5

Calculate expected returns and standard deviations of H and J using SIM.

Calculate the expected return and standard deviation of a portfolio formed by investing 40% in H and 60% in J.