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3. . (8 points) The historical returns data for the past three years for Stock B and the stock market portfolio are: Stock B: 24%,
3. . (8 points) The historical returns data for the past three years for Stock B and the stock market portfolio are: Stock B: 24%, 0%, 24%, Market Portfolios: 10%, 12%, 20%. Calculate the covariance of returns between Stock B and the market portfolio
a) Computed the covariance of returns between Stock B and the market portfolio. b) Compute the variance of the market portfolio returns.
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