Question: 1)What was the average return on IBM stock? 2) What was the average return on the market portfolio? 3) What was the covariance of returns?

1)What was the average return on IBM stock? 2) What was the1)What was the average return on IBM stock?

2) What was the average return on the market portfolio?

3) What was the covariance of returns?

4) What was the variance of returns on the market portfolio?

5) What is the beta of IBM stock?

Intro The following table shows rates of return for IBM stock and the market portfolio. IBM 8% 16% Market 6% 10% Year 2

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