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You have the following information: stock A stock B risk-free return 0.14 -0.07 0.02 variance 0.03 0.15 0 corr(A,B) 0.71 Compute the optimal combination between

You have the following information:

stock A stock B risk-free

return 0.14 -0.07 0.02

variance 0.03 0.15 0

corr(A,B) 0.71

Compute the optimal combination between stock A and stock B. Write down the weight of A (use decimals and round to the nearest 3 decimals)

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