Suppose you can form portfolios using only two stocks. Stock A and stock B, with the following characteristics: a. Find the portfolio weight on stock A that gives you a two-stock portfolio that has a standard deviation of 20%. (10 points) Hint: you will find two solutions and you should pick the efficient one b. Find the portfolio weight on stock A that gives you a two-stock portfolio that has a minimum standard deviation. (5 points)

E(ra)=18%, E(rb)= 12%, STab= 0.3, STa = 25%, STb= 15%