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You are interest in investing in two firms in Wisconsin, Harley Davidson (HOG) and Alliant Energy (LNT). LNT has an expected return of 9.8% and
You are interest in investing in two firms in Wisconsin, Harley Davidson (HOG) and Alliant Energy (LNT).
LNT has an expected return of 9.8% and a volatility of 16.4%.
HOG has an expected return of 14.2% and a volatility of 25.5%.
The correlation between the two is -0.55.
Risk-free rate is 2.
Suppose you want to create the "optimal risky portfolio", what is weight you need to put into LNT?
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