Question: Dr. PLUTO , a young CEO of the NINO Bank holds a Ph.D., degree with specialization in Corporate Finance from the

Dr. "PLUTO", a young CEO of the "NINO" Bank holds aPh.D.,degree with specialization in Corporate Finance from the "Donald Duck" University. On April 6, 2021 Dr.PLUTOwould deliver a lecture for the "ZZZ" Finance Association at the "Banana" State University.

Please assist him/her by employing Table 1 below to compute the following variables:

TABLE 1

TIMER [WF]R [BOA]R [Market]Probability

201814%25%28%0.35

201915%18%26%0.15

202020%19%24%0.20

202124%22%32%0.30

Assume that the Risk-Free Rate is 5%

  1. Calculate the Expected Returns.
  2. Calculate the Variances.
  3. Calculate the Risks.
  4. Calculate the Covariances.
  5. Calculate the Betas and comment analytically.
  6. Calculate the Coefficients of Variation.
  7. Calculate the Correlation Coefficients.
  8. Calculate the Sharpe's ratio and comment analytically.
  9. Calculate the Treynor's ratio and comment analytically.
  10. Draw the SML and the CML, respectively.
  11. Calculate using theCAPM Modelthe Returns for WF and BOA, respectively.

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