5.)

5. The following var-cov matrix of market index M, stock S, and stock B: 1 S B MI 0.1 S] B1 0.04 0.2 0.05 0.06 0.3 Investor K invests $5,000 in Portfolio K with $500 in S and $4,500 in B. Calculate the total risk of Portfolio K, the systematic risk of Portfoliok, and the unsystematic risk of Portfolio K. [14 points)