P8.1 P8.1 Calculating Beta: Information is provided below for three companies. The standard deviation of the market return is 0.055 and the expected market risk premium [(E(Rm) [p] equals 0.065. For each company, calculate the firm beta, and the relative risk of the firm's security return to the market return based upon their relative standard deviations. Are beta and the relative standard deviations both measures of the firm's risk? Firm 1 Firm 2 Firm 3 Standard deviation of firm's return... Covariance of firm's return and market return. 0.108 0.0027 0.066 0.0032 0.101 0.0042 P8.1 P8.1 Calculating Beta: Information is provided below for three companies. The standard deviation of the market return is 0.055 and the expected market risk premium [(E(Rm) [p] equals 0.065. For each company, calculate the firm beta, and the relative risk of the firm's security return to the market return based upon their relative standard deviations. Are beta and the relative standard deviations both measures of the firm's risk? Firm 1 Firm 2 Firm 3 Standard deviation of firm's return... Covariance of firm's return and market return. 0.108 0.0027 0.066 0.0032 0.101 0.0042