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Month 1 2 3 4 5 6 7 8 9 10 11 12 A 12.05 15.27 -4.12 1.57 3.16 -2.79 -8.97 -1.18 1.07 12.75 7.48

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Month 1 2 3 4 5 6 7 8 9 10 11 12 A 12.05 15.27 -4.12 1.57 3.16 -2.79 -8.97 -1.18 1.07 12.75 7.48 -0.94 B . 25.2 2.86 5.45 4.56 3.72 10.79 5.38 -2.97 1.52 10.75 3.79 1.32 31.67 15.82 10.58 -14.43 31.98 -0.72 -19.64 -10.00 -11.51 5.63 -4.67 7.94 S&P500 12.28 5.99 2.41 4.48 4.41 4.43 -6.77 -2.11 3.46 6.16 2.47 -1.15 Extra Credit #1 Compute the mean and standard deviation of the S&P 500 and using your estimates above and the single-index model equations estimate (a) the expected return for each security, (b) standard deviation of return for each security, and (c) covariance between the returns of each pair of securities

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