Question 3 : Solve the question (71 points) Suppose we have the following projects on two stocks. Assume the correlation among the two assets returns is 0.8 State of Economy Probability Stock A Stock B Recession 0.4 -3% -6% Slow 0.1 5 10 Average 0.3 12 9 Good 0.2 8 3 a. Find the expected return of shares A and B (16 points) b. Find the standard deviation of shares A and B (30 points) c. Find the investment percentage needed in A and B shares to create the minimum variance portfolio. (25 points)