Assume that Rm is the return of an index that has an annual volatility of 25% and no autocorrelation. Calculate the volatilities of: i. A portfolio that leverages the index 1.4 to 1 ii. A portfolio with a 60% portfolio weight in the index and the remainder in cash iii. The index's three month return volatility b. A forty-month return series has a sample skewness and sample excess kurtosis of 0.41 and 0.38, respectively. Calculate the Jarque-Bera (JB) statistic and test, at a 5% significance level, the hypothesis that this series of returns is normal. The critical value for the JB statistic at the 5% significance level is 5.99