Question: 1. Using the table below and assuming I = 8, 1 = 4, 011 = 2, and 012 = 2.5 calculate the following using the

1. Using the table below and assuming I = 8, 1 = 4, 011 = 2, and 012 = 2.5 calculate the following using the general multi-index model: ai bil b2 Oci a. Expected returns. I b. Variance of return. A 2 0.8 0.9 2 c. Covariance of return. Security B 3 1.1 1.3 1 C 1 0.9 1.1 1.5

1. Using the table below and assuming I1=8,I2=4,II=2, and I2=2.5 calculate the following using the general multi-index model: a. Expected returns. b. Variance of retrn. c. Covariance of return

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