Question: 3. Using the table below and assuming 1 = 8, 12 = 4,011 = 2, and 012 = 2.5 calculate the following using the general

3. Using the table below and assuming 1 = 8, 12

3. Using the table below and assuming 1 = 8, 12 = 4,011 = 2, and 012 = 2.5 calculate the following using the general multi-index model: a. Expected returns. b. Variance of return. c. Covariance of return. Security A B ai 2 3 1 bil 0.8 1.1 0.9 bi2 0.9 1.3 1.1 Oci 2 1 1.5 3. Using the table below and assuming 1 = 8, 12 = 4,011 = 2, and 012 = 2.5 calculate the following using the general multi-index model: a. Expected returns. b. Variance of return. c. Covariance of return. Security A B ai 2 3 1 bil 0.8 1.1 0.9 bi2 0.9 1.3 1.1 Oci 2 1 1.5

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