Question 6 (this question has three parts (a), (b) & (c)) (a) There are three securities (A, B and C) in the market. The covariance matrix and the standard deviations of the securities and the market are given in the following tables. B Market Covariance matrix A B -0.086 0.056 -0.0457 0.023 -0.0781 0.0354 A 32.25% Standard deviation table B 48.25% 25.24% Market 23.25% (a) Calculate the correlation coefficient between: (i) A and B. (ii) B and C. (iii) A and C. (iv) A and the market. (v) B and the market. (vi) C and the market. (Marks 1 x 6 = 6) (b) Calculate and explain the market risk for A, B and C. (Marks 1 x 3 = 3) (C) Identify and explain the key differences between covariance, correlation and beta in interpreting risk-return relationships. (Mark 1)