Year StockA Stock B Stock C Market return 10.0% 3.0% 8.0% -15.0% Risk-free return 1.0% 1.0% 9.0% 1.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 6.0% 10.0% -3.0% -3.0% 3.0% -8.0% 11.0% -9.0% 10.0% -6.0% 5.0% 8.0% 11.0% -6.0% -11.0% 6.0% -4.0% 15.0% -5.0% 14.0% -1.0% 2.0% 11.0% 9.0% -6.0% -11.0% -9.0% -2.0% 13.0% -5.0% 14.0% -10.0% 7% 2.0% 6.0% -2.0% 3.0% -3.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 2017 2018 2.0% 3. Kelly made a $1000 investment ($200 in Stock A, $300 in Stock B, and $500 in Stock ) at the beginning of 2008(i.e, January 1, 2008). (a) What will be the value of her investment at the end of 2011 (ie, December 31, 2011)? (b) Suppose Kelly changed the allocation of her portfolio to 50% in Stock A, 30% in Stock B, and 20% in Stock C at the end of 2011 (and no other changes after 2011). What will be the value of her investment at the end of 2017? (c) Based on CAPM, what are the expected returns of Stocks A, B, and C?- (d) What are the alphas (Jensen's index) of Stocks A, B, and C? Year StockA Stock B Stock C Market return 10.0% 3.0% 8.0% -15.0% Risk-free return 1.0% 1.0% 9.0% 1.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 6.0% 10.0% -3.0% -3.0% 3.0% -8.0% 11.0% -9.0% 10.0% -6.0% 5.0% 8.0% 11.0% -6.0% -11.0% 6.0% -4.0% 15.0% -5.0% 14.0% -1.0% 2.0% 11.0% 9.0% -6.0% -11.0% -9.0% -2.0% 13.0% -5.0% 14.0% -10.0% 7% 2.0% 6.0% -2.0% 3.0% -3.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 2017 2018 2.0% 3. Kelly made a $1000 investment ($200 in Stock A, $300 in Stock B, and $500 in Stock ) at the beginning of 2008(i.e, January 1, 2008). (a) What will be the value of her investment at the end of 2011 (ie, December 31, 2011)? (b) Suppose Kelly changed the allocation of her portfolio to 50% in Stock A, 30% in Stock B, and 20% in Stock C at the end of 2011 (and no other changes after 2011). What will be the value of her investment at the end of 2017? (c) Based on CAPM, what are the expected returns of Stocks A, B, and C?- (d) What are the alphas (Jensen's index) of Stocks A, B, and C