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Suppose Avon and Nova stocks have volatilities of 4 0 % and 2 8 % , respectively, and they are perfectly negatively correlated. What portfolio

Suppose Avon and Nova stocks have volatilities of

40 %

and

28 %,

respectively, and they are perfectly negatively correlated. What portfolio of these two stocks has zero risk?

The portfolio of these two stocks that has zero risk is

%

of Avon and

%

of Nova.

(

Round to two decimal places.

)

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