2. Mr. Andy Lim is a newbie investor. His current portfolio is primarily focused on holding firms like SM Investments (SM) and GT Capital (GTCAP). He wanted to diversify his stocks and allocate his money to other industries. After hearing the Jollibee Foods Corporation's global expansion strategies, he wants to add the stock (JFC). Before adding the stock to his portfolio, he wants to assess the directional relationship between the SM, GTCAP and JFC. Mr. Lim does not want to increase the unsystematic risk of his portfolio, thus, he is not interested in buying the JFC stocks if it tends to move in the same direction with the SM and GTCAP. Below present the monthly returns of the companies for the past 5 months of 2021. Months JFC SMGTCAP January -8.97 -6.10 -8.72 February 0.73 2.44 4.78 March -1.17 -4.86 -6.70 April -0.51 0.10 0.57 May 9.60 0.94 12.38 a. b. Compute for the variance of the 3 stocks (30points) Compute for the covariance of the 3 stocks (15points) What advice can you give to Mr. Lim? Explain your answer (10points)