a) Calculate the expected return of IBM and the market. (2 pts)

b) Calculate the variance of IBM and the market without using the excel function (you may use the function to confirm your answer is correct). (4 pts)

c) Calculate the covariance and correlations of IBM and the market without using the excel function. (You may use the function to confirm your answer is correct). (4 pts)

d) Compute the expected return and standard deviation of a portfolio that invests X% in IBM and (1-X%) in the market for values of 0% to 100% in increments of 10%. (5 pts)

3. Consider the following joint PDF: IBM's Return 20% -14% 0.3 0.1 14% Market Return -5% 0.3 0.3 a) Calculate the expected return of IBM and the market. (2 pts) b) Calculate the variance of IBM and the market without using the excel function (you may use the function to confirm your answer is correct). (4 pts) c) Calculate the covariance and correlations of IBM and the market without using the excel function. (You may use the function to confirm your answer is correct). (4 pts) d) Compute the expected return and standard deviation of a portfolio that invests X% in IBM and (1-X%) in the market for values of 0% to 100% in increments of 10%. (5 pts) 3. Consider the following joint PDF: IBM's Return 20% -14% 0.3 0.1 14% Market Return -5% 0.3 0.3 a) Calculate the expected return of IBM and the market. (2 pts) b) Calculate the variance of IBM and the market without using the excel function (you may use the function to confirm your answer is correct). (4 pts) c) Calculate the covariance and correlations of IBM and the market without using the excel function. (You may use the function to confirm your answer is correct). (4 pts) d) Compute the expected return and standard deviation of a portfolio that invests X% in IBM and (1-X%) in the market for values of 0% to 100% in increments of 10%. (5 pts)