You are given price data for two stocks, labeled #1 and #2 and plan to allocate equal capital to both. Answer the following questions. Answers are in % or % squared. Answer in % so an answer of 5.55% would be written in as 5.55, answer %s to the nearest 0.01%. Discrete returns are assumed. Use population statistics.

QUESTION 5

If the optimal weight (w_1opt) for a minimum variance portfolio for two-stocks is given as:

solve for the optimumal weight of stock X in % to the nearest 0.01%, answer in %, no % sign.