Calculate the portfolio weights that remove all risk

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Suppose? Intel's stock has an expected return of 22.0% and a volatility of 23.0%?, while? Coca-Cola's has an expected return of 8.0% and volatility of 15.0%. If these two stocks were perfectly negatively correlated?(i.e., their correlation coefficient is negative -1?),

a. Calculate the portfolio weights that remove all risk.

b. If there are no arbitrage? opportunities, what is the? risk-free rate of interest in this? economy

Reference no: EM132149272

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