The following table presents key data on excess returns of S&P500 Index and Facebook share price. Linear regression on the dependency of Google on S&P500 has been run. S&P500) FACEBOOK Average excess return 0,85% 1,89% Variance of excess returns 0,18% 0,60% Correlation coefficient 0,66 Regression Statistics Multiple R 0,662383 R Square Adjusted R Square Standard Error Observations 0,438751 0,429075 0,058376 60 + Standard Coefficients Error t Stat 0,008682 0,007687 1,129459 P-value 0,263354 Intercept X: S&P500 Excess Return 1,193025 0,177176 6,733571 8,2E-09 1. Calculate Sharpe ratios for S&P500 and Facebook. 2. What percentage of Facebook excess return volatility is explained by S&P500 volatility? 3. Calculate the weights of S&P500 and Facebook in the optimal active portfolio using Traynor Black Model. VI. The following table presents key characteristics of two assets Asset A Asset B Expected return 15% 4% Standard deviation of returns 25% 8% Correlation of returns 0,25 Risk free rate 2% 1. Calculate asset weights in the optimal risky portfolio 2. Calculate expected return on the optimal risky portfolio 3. Calculate standard deviation of the optimal risky portfolio The following table presents key data on excess returns of S&P500 Index and Facebook share price. Linear regression on the dependency of Google on S&P500 has been run. S&P500) FACEBOOK Average excess return 0,85% 1,89% Variance of excess returns 0,18% 0,60% Correlation coefficient 0,66 Regression Statistics Multiple R 0,662383 R Square Adjusted R Square Standard Error Observations 0,438751 0,429075 0,058376 60 + Standard Coefficients Error t Stat 0,008682 0,007687 1,129459 P-value 0,263354 Intercept X: S&P500 Excess Return 1,193025 0,177176 6,733571 8,2E-09 1. Calculate Sharpe ratios for S&P500 and Facebook. 2. What percentage of Facebook excess return volatility is explained by S&P500 volatility? 3. Calculate the weights of S&P500 and Facebook in the optimal active portfolio using Traynor Black Model. VI. The following table presents key characteristics of two assets Asset A Asset B Expected return 15% 4% Standard deviation of returns 25% 8% Correlation of returns 0,25 Risk free rate 2% 1. Calculate asset weights in the optimal risky portfolio 2. Calculate expected return on the optimal risky portfolio 3. Calculate standard deviation of the optimal risky portfolio