Return	Beta	Variance (Return)	Variance (Residual)
AAPL	0.14	1.4	0.080
MMM	0.10	1.1	0.055
XOM	0.09	0.9	0.025

Use the table for questions 15 through 17

REALLY JUST NEED HELP ON 17

15. Assume the expected market return is 8%, the variance of the market is 0.02, and the T-Bill rate is 2%. What is the residual variance for each of these three stocks?

16. What is the R2 of the beta estimation for all three stocks?

17. Assume the expected market return is 8%, its variance is 0.02, and the T-Bill is 2%. Form the optimal risky portfolio using the market and these three stocks. Report the weights for the active and passive portfolios, as well as the expected return and variance of the optimal risky portfolio.