Question: What is the arithmetic average return for the market portfolio? What is the covariance of returns? What is the variance of the market portfolio? What

What is the arithmetic average return for the market portfolio?

What is the covariance of returns?

What is the variance of the market portfolio?

What is the beta of the fund, using the industry model (not subtracting the risk-free rate)?

Intro The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). B 1 Year Fund Market 13% 2. 1 14% 3 2 -22% -14% 4 3 -6% -8% on 5 4 5% 28% 6 5 14% 8% 7 7 6 11% 8%

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