Suppose that the excess return for all securities can be described by a single index model: Ri=i+Rm+i The standard deviation of the market portfolio is 18%. Data for securities A, B and Care presented in the table below. Part 1 Attempt 1/10 for 10 pts What is the variance of returns on security B ? Part 2 Altempt 1/10 for 10pts Suppose that an investor forms a well-diversified portfolio of type A securities. What would be the variance of the portfolio's excess return, assuming there is an infinite number of securities with return characteristics which are identical to the characteristics of security A? Suppose that the excess return for all securities can be described by a single index model: Ri=i+Rm+i The standard deviation of the market portfolio is 18%. Data for securities A, B and Care presented in the table below. Part 1 Attempt 1/10 for 10 pts What is the variance of returns on security B ? Part 2 Altempt 1/10 for 10pts Suppose that an investor forms a well-diversified portfolio of type A securities. What would be the variance of the portfolio's excess return, assuming there is an infinite number of securities with return characteristics which are identical to the characteristics of security A