The stock of Mt. Elgon Holdings has a mean return of 12% and a standard deviation of 18%. The market return is 11.58% and the correlation coefficient between market return and stock return is 0.98. Market volatility is a standard deviation of 21% and the mean risk free rate of return is 6.8%. Required: i) Compute the covariance between the market return and the stock return. Interpret your answer (4 marks) ii) Compute the beta factor of the stock and interpret your answer (4 marks) iii) Based on CAPM, predict the cost of capital of Mt. Elgon Holdings (2 marks) iv) Compute any three measures of portfolio performance for this stock (6 marks) v) Explain how the management of Mt. Elgon Holdings could diversify its investments and manage the new portfolio of investments (4 marks