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Calculate the portfolio weights that remove all risk

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Reference no: EM132658723

Suppose? Intel's stock has an expected return of 24.0% and a volatility of 14.0%?, while? Coca-Cola's has an expected return of 5.0% and volatility of 10.0%. If these two stocks were perfectly negatively correlated? (i.e., their correlation coefficient is -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: EM132658723

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