Consider the single index model regression Rit=i+iRMt+it,t=1,,T,i=1,,NRMtiidN(0,M2)itiidN(0,i2)cov(is,jt)=0foralli=j,tandsRMtisindependentofitforalliandt where Rit denotes the return on asset i and RMt denotes the return on the market portfolio proxy. Let i and M denote the expected returns on the asset and the market, respectively, and let i2 and M2 denote the variances of the asset and the market, respectively. Finally, let iM denote the covariance between the asset and the market. 2. Using the single index regression, compute E[Rit],var(Rit),cov(Rit,Rjt) and cov(Rit,Rjs)