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Consider the following two assets: Assets Bond Stock Expected Return E(r) 7% 13% Standard Deviation o 5% 20% Suppose that the stock return and

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Consider the following two assets: Assets Bond Stock Expected Return E(r) 7% 13% Standard Deviation o 5% 20% Suppose that the stock return and the bond return are perfectly negatively correlated (i.e., the correlation coefficient is -1). Find the weight of bond to form a risk-free portfolio. Your submitted answer should be in decimal values and accurate to the hundredth (NOT in percentage points).

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