3. Consider Table 5. Each part of question 3 carry equal marks. Security Variance i Table 5 Correlation Average Alpha Market Systematic Unsystematic of i and Returns Beta Risk Risk Market 0.80 2% 0.60 1% 0.20 1% 1.00 9% 1.00 1 2 3 Market 12% 14% 16% 18% (c) Consider Table 5. Using the single index model, calculate the expected returns for securities 1, 2, and 3. Also, using the single index model, calculate the covariance between the returns of security 1 and security 2, and security 1 and security 3, respectively. Detail all calculations that you use. 3. Consider Table 5. Each part of question 3 carry equal marks. Security Variance i Table 5 Correlation Average Alpha Market Systematic Unsystematic of i and Returns Beta Risk Risk Market 0.80 2% 0.60 1% 0.20 1% 1.00 9% 1.00 1 2 3 Market 12% 14% 16% 18% (c) Consider Table 5. Using the single index model, calculate the expected returns for securities 1, 2, and 3. Also, using the single index model, calculate the covariance between the returns of security 1 and security 2, and security 1 and security 3, respectively. Detail all calculations that you use