Consider three risky assets with the following properties. Use this information to answer the following questions.

	Expected Return	Standard Deviation
asset 1	25%	30%
asset 2	21%	20%
asset 3	12%	16%

Covariances:

1,2 = 0.042000

1,3 = 0.031200

2,3 = 0.012800

1. What are the correlation coefficients for assets (1 & 2), (1 & 3), (2 & 3)?

2. What is the expected return for the portfolio that invests 30% in Asset 1, 30% in Asset 2, and 40% in Asset 3?

3. Compute the standard deviation for the portfolio that invests 30% in Asset 1, 30% in Asset 2, and 40% in Asset 3?