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The coefficient correlation between the returns of the stock fund and bond funds are 0.35.the return of the risk free asset is 2%. Assets expected

The coefficient correlation between the returns of the stock fund and bond funds are 0.35.the return of the risk free asset is 2%.

Assets expected returns Standard Dividends
Stock 1 17% 23%
Stock 2 23% 45%

The risk and returns of a portfolio using proportions of stocks 1 and 2 Fromm 0-100% in increments of 25%.

Weight in 1 weight in 2 Expected Returns Standard Deviation
0 1 23 45
0.25 0.75 21.5 36.17
0.50 0.50 20 28.63
0.75 0.25 18.5 23.66
1 0 17 23

Calculate the weights of the two assets that form the optimal risky portfolio. Also compute the expected return and standard deviation of the optimal risky portfolio (Show Work)

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