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Question 3: (20 points) Dr. PLUTO, a young CEO of the NINO Bank holds a Ph.D., degree with specialization in Corporate Finance from the Donald

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Question 3: (20 points) Dr. "PLUTO", a young CEO of the "NINO" Bank holds a Ph.D., degree with specialization in Corporate Finance from the "Donald Duck" University. On April 6, 2021 Dr. PLUTO would deliver a lecture for the "ZZZ" Finance Association at the "Banana" State University. Please assist him/her by employing Table I below to compute the following variables: TABLE 1 TIME R[WF) R[BOAJ 2018 2019 2020 2021 25% 18% 19% 22% 15% 20% 24% R[Market] Probability 28% 0.35 26% 0.15 24% 0.20 32% 0.30 Assume that the Risk-Free Rate is 5% 1. Calculate the Expected Returns. 2. Calculate the Variances. 3. Calculate the Risks. 4. Calculate the Covariances. 5. Calculate the Betas and comment analytically. 6. Calculate the Coefficients of Variation, 7. Calculate the Correlation Coefficients. 8. Calculate the Sharpe's ratio and comment analytically 9. Calculate the Treynor's ratio and comment analytically. 10. Draw the SML and the CML, respectively. 11. Calculate using the CAPM Model the Returns for WF and BOA, respectively. COMMENT ON YOUR RESULTS ANALYTICALLY AND DRAW CAREFULLY THE NECESSARY DIAGRAMS

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