Question: Q2) Consider the following information given below and do the following: a) Estimate monthly expected returns and the associated risk (Standard devistion) for each of

 Q2) Consider the following information given below and do the following:

Q2) Consider the following information given below and do the following: a) Estimate monthly expected returns and the associated risk (Standard devistion) for each of the company A,B C securities b) Rank securities of company A, B, and C from the most preferred to the least preferred, assuming that the rational investor behavior holds. Year Return of Company A Return of Company B Return of Company C 1 4.20% 4.08% 1.07% 2 -2.71% -2.73% -5.44% 3 4.15% 18.12% 0.74% 3.68% 1.60% -10.78% 4 Marks (6+3=9)

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