Amber Limited has been formed to undertake Investments opportunities in a portfolio made up of two projects B and C. The probability distribution and the returns of the two projects are given below

Probability Project Returns

B C

0.3 14% 13%

0.5 20% 7%

0.2 15% 5%

Amber has invested 60% of his resources in Project B and 40% in Project C

Required

1. What is the expected return of the portfolio ( 2 Marks)
2. Calculate the covariance and correlation of the portfolio ( 3 Marks)