Please show me step by step with the formula, thank you.

You have information on several possible investments as laid out in the table below. A, B, and C are individual risky securities. For now, assume these are the only 3 risky investments that comprise the market. F is the risk-free asset. M is the market portfolio. All returns are annual returns. Correlation Matrix Investment E(r) 0 A F M B 0.7000 A 19.20% 36% 1.0000 0.6000 0.0000 0.5 B 21.90% 35% 1.0000 0.5000 0.0000 0.6 12.00% 25% 1.0000 0.0000 0.4 F 3.00% 0% 1.0000 0.0 M 12.00% 10% 1.0 Answer the following questions with respect to this investment information: (a) Using the correlation matrix, compute the covariance of asset A with the market. (1 mark) 0.018 (b) Using the correlation matrix, compute the beta of asset C. (1 mark) 1 (c) Show that B is priced according to the CAPM. (2 marks) B (B) = 2.1; Rg = 21.9% Yes, it is priced correctly according to the CAPM comparing with the info given in the table for E(R) (d) Suppose the risk-free rate is 5%, how much of security F is included in the market portfolio M? Briefly explain. (1 mark) None (e) Assume that you want to form a portfolio that consist of a long position of $18,000 in asset C and a short position of $6,000 in asset A. What is the expected return and risk of this portfolio? (3 marks) E(R) = 8.4% o = 30.34% (1) You have $100,000 to invest. You would like use a combination of Mand F to obtain a standard deviation of 4% on your overall portfolio. How much (in dollars) do you invest in F if you choose the most efficient portfolio possible? What is the return of this portfolio? (3 mark) Invest $60,000 in risk free asset. E(R) = 6.6% (g) You have $100,000 to invest. What is the maximum Sharp ratio you can obtain on a portfolio? Show the calculation. (1 mark) 0.9 (h) Suppose 3 additional firms issue shares of equity, so that now there are a total of 6 risky assets. The new assets are negatively correlated with A, B and C. Relative to the previous question, would the maximum Sharp ratio in this new economy be higher or lower? Briefly Explain. (2 marks)