There are just three assets with rate of return r₁, r₂, and r₃, respectively. The covariance matrix and the expected rates of return are as follows:

		4	3	1					0.7
M=		3	2	5			E(r)=		0.5
		1	5	1					0.3

Consider the portfolio of the three assets. Suppose that the weight vector of portfolio A is W_A = (0.5, 0.2, 0.3).

(a) Let r_A and r_B denote the random rate of return of portfolio A and the minimum-variance portfolio B, respectively. Find the covariance between r_A and r_B __________, and then determine if r_A and r_B are correlated or not. __________ (Key in 'P' for positively correlated, 'N' for negatively correlated and 'U' for uncorrelated.)

(b) Can we find a portfolio whose rate of return is uncorrelated with that of portfolio A? __________ (key in 'Y' for Yes and 'N' for No.) (keep your answers to 4 decimal places except for (b))