Economic

1. Consider the following joint PDF [1.75 points) IBM's Return 18% 40% Market Return a] Calculate the expected return of IBM and the market. [0.5 points] b] Calculate the variance of IBM and the market [0.25 points] c} Calculate the covariance and correlations of IBM and the market without using the excel function. (You may use the function to conrm your answer is correct]. [0.50 pointS) d) Compute the expected return and standard deviation of a portfolio that invests X% in IBM and {1-X%] in the market for values of 10% to 100% in increments of 10%. [0.50 points]