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Exercise 2. Suppose that you have the following statistics for the market and stock A and B: E[RM]=0.06, E[RA]=0.08, E[RB]=0.19, Var[RM]=0.10, Var[RA]=0.15, Var[RB]=0.92, Cov[RA,RM]=0.10, Cov[RA,RB]=0.30.
Exercise 2. Suppose that you have the following statistics for the market and stock A and B: E[RM]=0.06, E[RA]=0.08, E[RB]=0.19, Var[RM]=0.10, Var[RA]=0.15, Var[RB]=0.92, Cov[RA,RM]=0.10, Cov[RA,RB]=0.30. What are the and for each of the stocks?
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