Greta has risk aversion of A=3 when applied to retum on wealth over a one-year horizon. She is pondering two portfolios, the S\&P 500 and a hedge fund, as well as a number of one-year strategles. (All rates are annual and continuously compounded.) The 5&P500 risk premium is estimated at 6% per year, with a standard deviation of 21%. The hedge fund risk premium is estimuted at 9% with a standard deviation of 36%. The returns on both of these portfollos in any particular year are uncorrelated with its own refurns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual return on the S\&P 500 and the hedge fund retum in the same year is zero, but Greta is not fully convinced by this claim. a-1. Assuming the correlation between the annual refurns on the two portfolios is 0.3 , what would be the optimal asset allocation? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Q-2. What is the expected risk premium on the portfolio? (Do not round intermediate caleulations. Enter your answers as a decima) rounded to 4 places.)