Question: pl Below is the monthly return for Apple stock (A) and the market (M). Assume the risk free rate is 1% per month during this

pl

pl Below is the monthly return for Apple stock
Below is the monthly return for Apple stock (A) and the market (M). Assume the risk free rate is 1% per month during this time period. (Use N-l , Do NOT use N). Stock A Market Month Return (13;) Return (rm) September -5% 2% October 2% 5% November 3% 2% December 1% 4% (a) What is the geometric average return and aritlnnetic average return for Apple stock La? (4 points) (b) What is the covariance and correlation between Li and rm? (8 points) (c) If you invest 40% of your money in stock A and 60% in the market, what is your best estimate of the standard deviation of your portfolio return? (5 points) ((1) Economically, What does the standard deviation in (c) measure? (3 points)

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