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Given the following: State of condition 1 II III Probability 0.30 0.40 0.30 Possible return : A 0.28 0.18 Possible return : B 0.35 0.15

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Given the following: State of condition 1 II III Probability 0.30 0.40 0.30 Possible return : A 0.28 0.18 Possible return : B 0.35 0.15 0.20 0.06 1- What is correlation coefficient of returns between investment A and B 2- How would you construct a portfolio to produce an expected return of 20%

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