Question 6: Portfolio Theory (10 points) Stock A has expected return of 26% and volatility 50%. Stock B has expected return of 7% and volatility 30%. The two stocks are perfectly negatively correlated (1.e., correlation coefficient of -1). a. Calculate the portfolio weights that remove all risk (l.e, the resulting portfolio must have a volatility of zero). b. If there are no arbitrage opportunities, what is the risk-free rate of interest in this economy? (if you did not manage to provide a numerical answer in point o, explain briefly in words)