3. Consider a bond market index that has an expected return of 7 percent, a broad stock market index that has an expected return of 12 percent and a risk-free rate of return of 3 percent. The variance of the stock market index is 0.20 and the variance of the bond portfolio is 0.10. The covariance of the two assets is 0.1. A) What is the correlation between these two assets? B) What is the optimal risky portfolio if the individual has a risk aversion coefficient of A=2? What is the weight put on the risk-free asset? C) What is the optimal risky portfolio if the individual has a risk aversion coefficient of A=5? What is the weight put on the risk-free asset? D) Comparing your answer to that of the previous question, how does the optimal portfolio look different? Give several reasons for this