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Question: assume that your uncle holds just one stock east coast...

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Stephanie Chambers v Activity information Assume that your uncle holds just one stock, Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, East the following returns but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain past 5 years. data for Westcoast Bank (WCB. Both banks have had less variability than most over the held a Measured by the standard deviation of other stocks not portfolio returns, by how much would your uncles risk have been reduced if he had round your consisting of 54% in ECB and the remainder in wcB? GHint: Use samplestandard deviation formula.)Do intermediate calculations. the Year ECE WCB 10.00% 15.00% 35.00% -5.00% 10.00% 15.00% 35.00% Average return 15.00% 15.00% Standard deviation 22.64% 22.64% O a. 3.59% O b, 2.99% O c. 4.51% O d, 4.27% O e, 3.99% I o
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