Problem $10-8($Algo$)$

Assume that security returns are generafed by the single$-$index model,

$R_{\text{I}}=I{}_{\text{I}}{}_H$ three securties $A,R$ and $G,$ characterired by the following data

$\backslash$table$[[$Security$,8,$E$($h$),$e$($ei$)],[$A$,1,1,184,190],[8,1\mathrm{.}3,12,11],[6,1\mathrm{.}5,14,13]]$

enquired:

a$.8$ er $=144,$ calculate the variance of rehams of securiles $A,$ and $C$

b$.$ Now assume that these are an inhilie number of assets with return chawacteristics idevical to those of A$,$ R$,$ and C respectivety, What will be the mean and warlance of excess returms for lecorities A$,$ A and $C7$