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Assume that security returns are generated by the single-index model, R1=i+iRM+ei Where R1 is the excess return for security / and RM is the market's

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Assume that security returns are generated by the single-index model, R1=i+iRM+ei Where R1 is the excess return for security / and RM is the market's excess retum. The risk-free rate is 4%. Suppose also that there are three securities A,B, and C, characterized by the following data: a. If M=1mx, calculate the variance of returns of securities A,B, and C

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