c) The following table provides the observed returns for the past 24 months on the market and on stocks A and B. Calculate the expected return, variance, and standard deviation for the market and a portfolio X that consists of A and B. For the portfolio X, dynamic rebalancing is applied for each month such that your portfolio X has 10% in A and 90% in B. Calculate and interpret beta for portfolio X. (10 marks Month Market return (%) Stock A's return (%) Stock B's return (%) 1 -8 -10 5 2 3 4 12 -6 -11 8 19 -13 15 4 -10 5 2 3 2 6 8 6 7 7 6 5 7 8 7 8 -12 20 9 4 8 10 6 10 12 5 6 11 12 30 22 6 9 13 -10 12 9 6 13 13 14 15 16 17 14 11 10 -5 5 35 11 14 0 8 6 18 19 9 9 20 7 21 5 2 1 1.5 4.5 6.5 7.5 6.5 8.5 -4.5 -3 9.5 22 -2 23 -1 24 12 13 c) The following table provides the observed returns for the past 24 months on the market and on stocks A and B. Calculate the expected return, variance, and standard deviation for the market and a portfolio X that consists of A and B. For the portfolio X, dynamic rebalancing is applied for each month such that your portfolio X has 10% in A and 90% in B. Calculate and interpret beta for portfolio X. (10 marks Month Market return (%) Stock A's return (%) Stock B's return (%) 1 -8 -10 5 2 3 4 12 -6 -11 8 19 -13 15 4 -10 5 2 3 2 6 8 6 7 7 6 5 7 8 7 8 -12 20 9 4 8 10 6 10 12 5 6 11 12 30 22 6 9 13 -10 12 9 6 13 13 14 15 16 17 14 11 10 -5 5 35 11 14 0 8 6 18 19 9 9 20 7 21 5 2 1 1.5 4.5 6.5 7.5 6.5 8.5 -4.5 -3 9.5 22 -2 23 -1 24 12 13