Problem 3. (10 pts) Consider the market with three stocks given below: Expected Return 0.02 Stock Returns R1 R2 R3 Ri 0.01 -0.05 0.02 Cov(Ri, Rj) R2 -0.05 0.04 0.10 R3 0.02 0.10 0.10 0.04 0.10 The risk-free return is R= 3% and it is assumed that CAPM model holds. Find the Jensen index for each stock. Problem 3. (10 pts) Consider the market with three stocks given below: Expected Return 0.02 Stock Returns R1 R2 R3 Ri 0.01 -0.05 0.02 Cov(Ri, Rj) R2 -0.05 0.04 0.10 R3 0.02 0.10 0.10 0.04 0.10 The risk-free return is R= 3% and it is assumed that CAPM model holds. Find the Jensen index for each stock