11A) Stock X has annualized volatility (not variance) of 37%, whereas Stock Y has annualized variance (not volatility) of 57.9%. The historical annualized arithmetic return of stocks X and Y are 16.4% and 8.3% respectively. The correlation between the returns of Stock X and Stock Y is 18%. You have $40,000 total to invest in stocks X and Y. Youve decided to invest $30,590 of the $40,000 in Stock X and the remainder of the $40,000 in Stock Y (i.e. you will NOT be forming an equally-weighted portfolio). Compute the annualized volatility (not variance) of the resulting two-asset portfolio. Express your answer as a percentage

B) ZigZag stock had a return last year of 9.34%. The Russell 3000 (broad market index) returned 11.5% last year. One year ago, a US Treasury zero coupon bond (i.e. a 1 year T-Bill), with a face value of $1000 was trading at $982.67. Determine the risk-free rate in the preceding year. Enter your answer as a percent