Question 6 Suppose you have 2 stocks, A and B. You are given the expected return, E(r) and standard deviation, . The correlation coefficient between the returns of A and B is+1 E(r) A 15% 20% B 9% 12% You compare the capital allocation line (CAL) for 4 portfolios with the following weights. (Assume a risk-free rate of 3%) WA-1 and WB = O WA 0 and wB 1 WA = .5 and wB = .5 WA = .25 and WB = .75 Which one of these would provide the CAL with the steepest slope? WA = .25 and WB = .75 WA = .5 and WB = .5 wA = 0 and wB = 1 WA-1 and WB = 0