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Suppose that you purchased three types of financial assets, A, B and C

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Suppose that you purchased three types of financial assets, A, B and C. The returns from the assets in the past 5 days are reported in the following table: ? B 1 -4 ? 20 20 3 2 day 1 day 2 day 3 day 4 day 5 5 10 -10 20 2 4 4 8 -10 Based on the data, we calculate the covariance matrix with some blank entries: AB C ? B 6.4 24 C-18 (??) 216 (a) Complete the covariance matrix by filling in the blank entries, (?) and (??). Use the population version of variance and covariance formula. (b) If you expect the returns from C to drop next year, how would you expect the returns from A based on the covariance? How about the returns from B? (c) Compare the relationships of pair A&C and pair B&C. Determine which pair has the stronger relationship. (d) Consider portfolio X that invests 70% in B and 30% in C. Find the mean and standard deviation of returns from each portfolio. Compare the new portfolio with the original assets B and C.