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Suppose Intel's stock has an expected return of 26% and a volatility of 50%, while Coca-Cola's stock has an expected return of 6% and a

Suppose Intel's stock has an expected return of 26% and a volatility of 50%, while Coca-Cola's stock has an expected return of 6% and a volatility of 25%. If these two stocks were perfectly negatively correlated (i.e. their correlation is -1),

a) Calculate the portfolio weights that remove all risk

b) What is the risk-free rate of interest in this economy

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