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An investor is evaluating two shares: Premier Group Ltd and Sappi Ltd . Premium Group Ltd is a food producer and consumer products maker, while

An investor is evaluating two shares: Premier Group Ltd and Sappi Ltd. Premium Group Ltd is a food producer and consumer products maker, while Sappi Ltd is a pulp and paper company. The shares of these two companies have a covariance of -0.770000. The expected return on Premium Group Ltd is 10% with a standard deviation of 8.12%, while Sappi Ltd has an expected return of 8.80% with a standard deviation of 4.75%. Determine the optimal weight of Premium Group Ltd in the investors two-asset portfolio by using the Factor A method.

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