QUESTION 1 The following table contains yearly rate of returns on IBM and Target from 2017 to 2020: Year 2017 2018 2019 2020 Rate of return on IBM (%) 7 11 12 22 Rate of return on Target (%) 13 10 1. Would you invest in IBM? Why or why not? (Hint: compute RRC for each stock); 2. Compute the covariance between the return on IBM and the return on Target; 8. In order to mitigate risk (given your result in 2), would you consider investing in a portfolio consisting of IBM and Target? Why or why not? 20 13