Portfolio with Two Risky Assets (Question 6 to Question 11) Consider a portfolio of two assets ( A and B ) with mean returns A=16% and B= 8% and standard deviations A=10%,B=5%. Unless otherwise noted, you cannot short sell, and the portfolio includes only assets A and B (i.e., no borrowing and saving). Consider a risk-neutral investor with MV utility. It is optimal for this investor to allocate weight wA% to asset A, where wA= 75 50 None of the above 100 Suppose that correlation of A and B is =0.85. What is the covariance between these two assets? -0.0425 -0.005 -0.05 -0.00425 Suppose that correlation of A and B is =1 and you want to minimize portfolio risk (SD). The combination of the minimized risk and required portfolio weights is ( p,wA)= (0.0%,0.33) (0.0%,0.5) (0.5%,0.5) (10.0%,0.33)