Suppose Inte's stock has an expected return of 26.0% and a volatility of 50.0%, while Coca-Cola has an expected return of 6.0% and a volatility of 25%. If these two stocks were perfectly correlated, (i.e, their correlation coefficient is -1),

Part A)Calculate the portfolio weights that remove all the risk.

1 - The portfolio weight of Intel would be: ________%

2 - The portfolio weight of Coca-Cola would be: ________%

Part B) If there are no arbitrage opportunities, what is the risk-free rate of interest in this economy.

1 - The risk-free rate of interest in this economy is: _______%