Refer to the followine table for Problems 2 through 7. 2(rM)=.06 2. Given the assumption of the single-factor model, what is the residual variance of each of the foregoing stocks? 3. What is the beta factor of the three-stock portfolio? 4. What is the variance of the portfolio? 5. What is the expected return on the portfolio? 6. Given the actual (Markowitz) covariance between the stocks' returns, what is the actual portfolio variance? Cov(rA,rB)=.020Cov(rA,rC)=.035Cov(rB,rC)=.035 7. Why might the actual covariance differ from those found using the single-factor model formula