Consider the following two portfolios: R1 = 0.5X1 + 0.3X2 + 0.2X3 R2 = -0.3X1 + 1.5X2 0.2X3 where the means of X1 , X2, and X3 are 3%, 10% and 5%, respectively; the standard deviations are 30, 50% and 60%, respectively; and the covariances are all zeros. 7. What are the variances of R, and R2? (20 points) 8. What is the covariance between R, and Rz? (10 point) 9. Calculate the correlation between R, and R,? (5 points)