18. The following data describes a three-stock financial market that satisfies the single-index model.

Stock	Capitalization USD million	Beta	Mean excess return (%)	Standard deviation (%)
A	3,000	1.0	10	40
B	1,940	0.2	2	30
C	1,360	1.7	17	50

The standard deviation of the market index portfolio is 25%.

Required:

i). compute the mean excess return of the index portfolio.

ii). Compute the covariance between Stock A and stock B.

iii). Calculate the covariance between stock B and the index.