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3. Consider Table 5. Each part of question 3 carry equal marks. Table 5 Security Variance Correlation Average Alpha Market Systematic Unsystematic i of i
3. Consider Table 5. Each part of question 3 carry equal marks. Table 5 Security Variance Correlation Average Alpha Market Systematic Unsystematic i of i and Returns Beta Risk Risk Market 1 12% 0.80 2% 2 14% 0.60 1% 3 16% 0.20 1% Market 18% 1.00 9% 1.00 - (b) Consider Table 5. Using the single model, calculate systematic and unsystematic risk for securities 1, 2, and 3. Detail all calculations that you use
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