Question 3: 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 1 below to compute the following variables: TABLE 1 TIME R [WF] R [BOA] R [Market] Probability 2018 14% 25% 28% 0.35 2019 15% 18% 26% 0.15 2020 20% 19% 24% 0.20 2021 24% 22% 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 Sharpes ratio and comment analytically. 9. Calculate the Treynors 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.

NOTE - DONOT USE EXCEL