Security A 8.50 Security B Dividend Price Dividend Price Dividend $ 35.00 Security C $178.00 8.80 $ 0.45 $37.00 $ 1.25 $165.00 $ 5.15 Time Price 1 $ 2 3 $ 9.25 4 $ 5 $ 6 7 $ $32.00 $174.00 8.70 $ 0.45 $36.00 $ 1.25 $182.00 $ 5.25 9.20 $183.00 $ 39.00 9.60 $ 0.45 $43.00 $ 1.75 $187.00 $ 5.35 9.15 $193.00 $41.00 A dividend entry on the same line as a price indicates that the return between that time period and the previous period consisted of a capital gain (or loss) and the receipt of the dividen Securities A, B and C can be referred to Securities 1, 2 and 3 respectively. For the purpose of this excercise only, please do not annualize your estimates. A. (3pts) Compute the rate of return for each company for each month (use simple return formula). B. (3pts) Compute the average rate of return for each company. C. (6pts) Compute the standard deviation of the rate of return for each company (use population variance formula. i.e. divide by N, not (N-1) ). D. (6pts) Compute the covariance and correlation coefficients between all possible pairs of securities (again, use population formula). E. (8pts) Compute the average return and standard deviation for the following portfolios: i. A + B ii. 2 A + C iii. B + C iv. 1/3 A+ 1/3 B+ 1/3 C