Greta has risk aversion of A=5 when applied to return 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 1.year strategles. (All rates are annual and continuously compounded) The S\&P 500 risk premium is estimated at 7% per year, with a standard deviation of 19%. The hedge fund risk premium is estimated at 9% with a standard deviation of 34%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coetficlent between the annual return on the S\&P SOO and the hedge fund return in the same year is zero, but Greta is not fully convinced by this claim. a-1. Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset aliocation? (Do not round intermediate colculations. Enter your answers as decimals rounded to 4 places.) a-2. What is the expected risk premlum on the portiolio? (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 ploces.)