Question 1 You have observed the following stock return overtime. Year Stock X %) Stock Y% Market (%) 2013 2014 2015 2016 2017 14 19 -16 3 20 13 7 -5 1 11 12 10 -12 1 15 Based on the information in the table, calculate: a. beta of stock X and Stock Y. (4 marks) b. average return and standard deviation of stock X and Stock Y (5 marks) c. covariance and correlation between stocks. (6 marks) d. risk and return of portfolio based on Markowitz and Sharpe Model consisting of 80 percent of stock X and 20 percent of Stock Y. (10 marks) TOTAL 25 MARKS