(a) Using the correlation matrix, compute the covariance of asset A with the market.

(b) Using the correlation matrix, compute the beta of asset C.

(c) Show that B is priced according to the CAPM.

oi You have information on several possible investments as laid out in the table below. A, B, and C are individual risky securities. For now, assume these are the only 3 risky investments that comprise the market. F is the risk-free asset. M is the market portfolio. All returns are annual returns. Correlation Matrix Investment E(r) A B F M A 19.20% 36% 1.0000 0.7000 0.6000 0.0000 0.5 B 21.90% 35% 1.0000 0.5000 0.0000 0.6 12.00% 25% 1.0000 0.0000 0.4 3.00% 0% 1.0000 0.0 M 12.00% 10% 1.0 Answer the following questions with respect to this investment information: F