The management of a company is evaluating two projects whose returns depend on the future state of the economy as shown below:

here is an exercise for my analysis and investing subject, I'm struggle with it: (((. i hope that having a detailed solution to this exercise. thanks very much

(30 pts) The management of Kensington ple is evaluatiny two projects whose returns depend on the future state of the economy as shown below Probability State of economy IRR of Project AS) IRR of Project 801 02 Weak 05 Normal 03 Strong 10 18 28 20 Required: Between A and B, which project is risker than the other illustrate your answer using correct indicators). (b) Explain how a portfolio should be constructed to produce an expected return of 16% (c) Define and explain the implications of correlation coefficient. Calculate the correlation between project A and B, and assess the degree of risk of the portfolio in (b) using standard deviation (30 pts) The management of Kensington ple is evaluatiny two projects whose returns depend on the future state of the economy as shown below Probability State of economy IRR of Project AS) IRR of Project 801 02 Weak 05 Normal 03 Strong 10 18 28 20 Required: Between A and B, which project is risker than the other illustrate your answer using correct indicators). (b) Explain how a portfolio should be constructed to produce an expected return of 16% (c) Define and explain the implications of correlation coefficient. Calculate the correlation between project A and B, and assess the degree of risk of the portfolio in (b) using standard deviation