1. Consider 3 stocks A, B, and Cand the risk-free rate RF=0.5%. The logarithmic rates of return are as follows: 6. RA:(%) RB.(%) Ret(%) 6. -2 8 9. 3. 8 -1 -5 a) Compute the mean returns the holding...

Extracted text: 1. Consider 3 stocks A, B, and Cand the risk-free rate RF=0.5%. The logarithmic rates of return are as follows: 6. RA:(%) RB.(%) Ret(%) 6. -2 8 9. 3. 8 -1 -5 a) Compute the mean returns the holding returns for the entire period. b) Determine the risk of each stock. c) Measure the correlation between A and B, A and C, and B and C. d) Compute the expected return and risk for the following portfolios: P1:40% from the budget was invested in A and the rest of the money in B P2: XA-40%, xc-60% • P3: XA=30%, xp=30%, xc=40% P4: Xp3=70%, xRE =30% Determine the contribution of each stock to the above portfolios return and risk. 2. Download the daily closing prices for two stocks during the past year (2021) and compute the following: a) The expected rate of return for each stock. b) The risk of each stock. c) The correlation coefficient between the two stocks' rates of return. d) The expected return and risk of an equally weighted portfolio. 6 0074?I 426m 674