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Business, 22.04.2020 01:45 paolaf9996

Suppose Intel's stock has an expected return of 20.0% and a volatility of 3.0%, while Coca-Cola's has an expected return of 7.0% and volatility of 3.0%. 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?

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Suppose Intel's stock has an expected return of 20.0% and a volatility of 3.0%, while Coca-Cola's ha...
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