Question 3. (Total: 30 point} The following return forecasts are for two stocks, Mars and Venus: __ Bu" market Probability Mars 8% 10% 35% Venus 5% 10% 25% From this forecast, the expected returns of Mars and Venus are computed as 9.50% and 3.50%, respectively. The standard deviations of returns for Mars and Venus are 14.90% and 10.50%, respectively. a) Calculate the correlation between the returns of Mars and Venus. Show all computations. [10 points) b) (i) According to the meanvariance portfolio theory, which stock, Mars or Venus, should be chosen for a rational riskaverse, meanvariance investor whose index of risk aversion, A, is 3? Eglain the reason(s) for your choice. Show your comtations, if any, for full credit. (7 points) (ii) If the investor is riskneutral, would your answer be different from (i)? Explain. (3 points} :2} Cum the W of an equalweighted portfolio comprising of Mars and Venus stocks. (5 points)