The following shows the expected percentage returns on three stocks over the next six years: Stock Percentage Return (%) Year 1 2 3 4 5 6 A 10 5 6 8 12 15 B 8 4 4. 80 6.4 9.6 12 C 5 10 12 10 6 6...

The following shows the expected percentage returns on three stocks over the next six years:
Stock Percentage Return (%)
Year 1     2      3      4      5         6
A     10   5      6      8     12       15
B      8    4 4.  80   6.4   9.6       12
C     5     10   12    10    6          6

Required:


(i) Find the expected return for each of the stock.




(ii) Compute the variance and standard deviation for stock A, B and C. Show your working.




(iii) Justify how can you minimize the risk of the above combination of stocks.
(Must show working method as well)