Consider the following probability distribution for stocks X and Y : State Probability Return on stock X Return on stock Y 1 .25 13% 14% 2 .5 10% 10% 3 .25 -6% -8% 1. find The correlation coefficient between the two stocks is 0.20. Write your answers to two decimal places. Assume that the universe is composed only of stocks X, Y. Draw an approximation of the opportunity set. Mark on the graph 1) stocks X and Y 2) The efficient frontier 3) the minimum variance portfolio (G) and 4) label of the axis. 2) If there exist a risk-free asset (r f ) that earns 3% annual return. Find the weights of stock X and Y in the optimal risky portfolio.