Assume that securhy returns are generoted by the single index model. Ri=ai+iRr+ei where Ri is the excess retum for security i and hn is the market's excess retum. The risk-free rate is 2x. Suppose also that there are three securities A,B, and C, characterized by the following data: a. If oy = 16 , calculate the variance of returns of securities AB, and C b. Now assume that there are an infinte number of assets with return characteastics isentical to those of A,B, and C respectively. What will be the mean and variance of excess icturns for securities AB and C (Enter the variance onswers os a percent squared nnd mean as a pereentsge. Do not round intermedinte celeulasions. Hound your answers to the nenrest whele numbec) b. Now assume that there are an infinite number of assets with return characteristics identical to those of A, R and C, respectively What wil be the mean and variance of excess returns for securties A, B, and C? (Enter the variance onswers as a percent squared and mean as a percentoge. Do not round intermediate colculations. Round your answers to the nearest whole number)