17) In this problem, you will apply the CAPM to value the tech stocks of the table below. 1. Compute the covariance matrix. 2. What are the CAPM betas for the 4 tech stocks? 3. What are the alphas of the 4 tech stocks? 4. What are the systematic and idiosyncratic variances of each tech stock? You can assume that the latest risk-free rate is 0.08%. Correlations Price Expected Volatilit Alphabet Amazon Apple Microsoft return Marke t Caps (trillio n) Alphabet 20.90% 40.60% 1 0.87 0.75 0.92 $1.75 $2,653.6 4. Amazon 24.50% 49.20% 0.87 1 0.81 0.88 $1.49 $2,936.3 5 Apple 25.40% 35.20% 0.75 0.81 1 0.85 $2.59 $158.52 $2.14 $285.59 Microsoft 26.60% 39.10% 0.92 0.88 0.85 1 S&P 500 13.80% 26.80% 0.87 0.88 0.9 17) In this problem, you will apply the CAPM to value the tech stocks of the table below. 1. Compute the covariance matrix. 2. What are the CAPM betas for the 4 tech stocks? 3. What are the alphas of the 4 tech stocks? 4. What are the systematic and idiosyncratic variances of each tech stock? You can assume that the latest risk-free rate is 0.08%. Correlations Price Expected Volatilit Alphabet Amazon Apple Microsoft return Marke t Caps (trillio n) Alphabet 20.90% 40.60% 1 0.87 0.75 0.92 $1.75 $2,653.6 4. Amazon 24.50% 49.20% 0.87 1 0.81 0.88 $1.49 $2,936.3 5 Apple 25.40% 35.20% 0.75 0.81 1 0.85 $2.59 $158.52 $2.14 $285.59 Microsoft 26.60% 39.10% 0.92 0.88 0.85 1 S&P 500 13.80% 26.80% 0.87 0.88 0.9