Calculate the realized returns for a hypothetical portfolio invested equally in the three stocks. Calculate the realized return (mean return), and Standard deviation for each stock and one relevant Index as well. Compare and contrast these calculations and identify the noticeable differences (10 Marks)
If you are asked to choose two out of above three stocks, which combination of two stocks would you be suggesting to your hypothetical investors? (10 Marks)
How does your answer change if you add the index as an allowable investment?