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R Question 3 (20 marks) The index models for Tesla and Facebook's stocks have been estimated with the following result: RTesla 0.2 +0.94RM+ eTesta RFacebook

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R Question 3 (20 marks) The index models for Tesla and Facebook's stocks have been estimated with the following result: RTesla 0.2 +0.94RM+ eTesta RFacebook 0.01 +1.5RM+ Facebook If OM= 0.3 and RTesla 0.28, and G (Facebook) = 0.10 1. What is the covariance between the returns on Tesla and Facebook's stocks? (1 mark) 2. What is the standard deviation of Tesla's returns? (1 mark) 3. What is the standard deviation for Facebook's returns? (1 mark) 4. What is the correlation coefficient between the returns on Tesla and Facebook stocks? (1 mark) 5. Fill in the following Table: (7 marks) Returns for Returns for Tesla stock Facebook stock Variance Systematic Risk Unsystematic Risk Beta Systematic Risk / (Systematic Risk + Unsystematic Risk) Alpha R Question 3 (20 marks) The index models for Tesla and Facebook's stocks have been estimated with the following result: RTesla 0.2 +0.94RM+ eTesta RFacebook 0.01 +1.5RM+ Facebook If OM= 0.3 and RTesla 0.28, and G (Facebook) = 0.10 1. What is the covariance between the returns on Tesla and Facebook's stocks? (1 mark) 2. What is the standard deviation of Tesla's returns? (1 mark) 3. What is the standard deviation for Facebook's returns? (1 mark) 4. What is the correlation coefficient between the returns on Tesla and Facebook stocks? (1 mark) 5. Fill in the following Table: (7 marks) Returns for Returns for Tesla stock Facebook stock Variance Systematic Risk Unsystematic Risk Beta Systematic Risk / (Systematic Risk + Unsystematic Risk) Alpha

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