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

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

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

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

ExpectedStandard Deviation Asset 1 Asset 2 Asset 3 25.00% 2 1.00% 12.00% 30.00% 20.00% 16.00% Covariances: 1,2= 0.042000 ,,-0.031200 O2,-0.012800