QUESTION 3 We are on an isolated small island with only three risky securities traded (stock A, stock B, and stock C), along with one government security earning a 3% risk-free return. The covariance matrix of stock returns and the portfolio weights of the "Market Portfolio" are shown below. =0.200.0600.060.300000.40andwMkt=0.500.200.30 Anthrax Fund is trying to estimate the "equilibrium"--or "reference"--vector of expected returns, , on the risky stocks as a first step in employing the Black-Litterman method. The Antrax Fund managers are assuming a risk-free rate of 3%, and the Market Risk Premum =11%. What are the "reference" returns on the three stocks? [Use Excel or Python, if you don't want to calculate the problem by hand.] a.E(retA)E(retB)E(retC)=8.96%=7.20%=9.60% 0.E(retA)=11.2%E(retA)=9.0%E(retA)=12.0%E(retA)=11.96%E(retB)=10.20%E(retC)=12.60% .E(retA)=14.2%E(retB)=12.0%E(retB)=15.0%