PLEASE ANSWER ALL PARTS FOR THUMBS UP

Problem 5 Intro Suppose that the excess return for all securities can be described by a single index model: Rp = 0 + BiRm + e The standard deviation of the market portfolio is 18%. Data for securities A, B and C are presented in the table below: Security Bi E(R) (e) 0.7 10% 21% B 0.9 15% 15% 1.6 13% 10% | Attempt 2/10 for 10 pts. Part 1 What is the variance of returns on security B? 4+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. Suppose that an investor forms a well-diversified portfolio of type A securities. What would be the variance of the portfolio's excess return, assuming there is an infinite number of securities with return characteristics which are identical to the characteristics of security A? 4+ decimals Submit