Assume that the expected return on the S&P/TSX Composite Index is 12 per cent with a standard deviation of 16 per cent. Given the following information for stocks A, B, and C and the single index model:
(a) Calculate the expected return for each stock.
(b) Calculate the variance and standard deviation for each stock.
(c) Indicate which of the three securities is the riskiest and which is least risky when added to a well-diversified portfolio.

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The Answer of Assume that the expected return on the S&P/TSX Composite Index is 12 per cent with a standard deviation of 16 per cent. Given the following information for stocks A, B, and C and the single index model:
(a) Calculate the expected return for each stock.
(b) Calculate the variance and standard deviation for each stock.
(c) Indicate which of the three securities is the riskiest and which is least risky when added to a well-diversified portfolio.

Assume That the Expected Return on the S&P/TSX Composite Index