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Finance

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1. Return of Stock A and B 
P Stock A B

1 20% 15% 9%

2 15% 10% 14%

3 30% 15% 21%

4 15% 13% 12%

5 20% 20% 18% 

a) Calculate the expected return for Stock A and B

b) Calculate the variance for Stock A and B

c) Calculate the standard deviation for Stock A and B

d) Based on your answer in (c), which stock is riskier. 

2. Amy is planning to invest in below portfolio option. 
STOCK INVESTMEN RETURN  BETA

1 150,000 10% 1.50

2 190,000 5% 1.25

3 99,000 11% 1.00

4 120,000 10% 0.50

5 130,000 15% 1.00 
Based on the provided information, calculate: 
a) Portfolio expected return b) Portfolio beta