Dr. PLUTO, a young CEO of the NINO Bank holds a Ph.D., degree with specialization in Corporate Finance from the Donald Duck University. On April 6, 2021 Dr. PLUTO would deliver a lecture for the ZZZ Finance Association at the Banana State University.

Please assist him/her by employing Table 1 below to compute the following variables:

TABLE 1

TIME R [WF] R [BOA] R [Market] Probability

2018 14% 25% 28% 0.35 2019 15% 18% 26% 0.15 2020 20% 19% 24% 0.20 2021 24% 22% 32% 0.30

Assume that the Risk-Free Rate is 5%

1. Calculate the Expected Returns.

2. Calculate the Variances.

3. Calculate the Risks.

4. Calculate the Covariances.

NOTE - DO NOT USE EXCEL