Two risky assets with expected rates of return and have identical variances and a known correlation coefficient . There is also a risk-free asset with a rate of return .

Using mean-variance portfolio theory, find the optimal weight of asset 2.

Please round your numerical answer to three decimal places.

Question 2 20 pts Two risky assets with expected rates of return 1 +0.10 and r2 = 0.08 have identical variances and a known correlation coefficient p = 0.99. There is also a risk-free asset with a rate of return rf : 0.05. Using mean-variance portfolio theory, find the optimal weight of asset 2. Please round your numerical answer to three decimal places