Consider the following time-series observations on realized returns on the stocks of company A, and company B, as well as the returns on the Market portfolio I'm respectively. Table 1: Realized percentage returns on alternative assets market portfolio stock A stock B I'm TA TB 5% - 2% -3% 7% 1% 2% -15% -50% -1.5% 12% 1.5% 2% -3% 2.5% 1.7% 5% - 1% 2.5% 6% 2.5% -1.5% --2% 1 -0.5% 5% 1. Compute the mean and the standard deviation of these three assets: {MA, MB, Am] standard deviations of returns {0A, 03, 0m} (Hint: use "stdev" function in Excel) 2. Compute pm, the correlation coefficients between asset m and asset A, and Pm.n the correlation coefficients between asset m and asset B. (Hint: use CORREL function in Excel) 3. Estimate B, and By using the following formula, BAP.A. om OB BB = Pm,B. (Hint: alternatively you can use the "SLOPE" function in Excel) 4. Consider a portfolio-p with W = 0.75 in stock A, W, = 1 - 0.75 = 0.25 in stock B. This portfolio would have generated an additional time series of historical returns Tp.t=W.TAL+W2 1B.. (a) Compute the mean and standard deviation of portfolio returns, denoting them as Hy and op respectively. Compute pm.,, the correlation coefficients between market return and portfolio return Tp.t- (b) Compute the beta of this portfolio, B, by calculating B = Amp 2 using data on r, and rm (Hint: alternatively you can use the "SLOPE" function in Excel) 5. Using estimates of BA and Be from part 3 of this question, compute alternatively B =W.BA+W.BB 6. Compare B; and g, comment briefly