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You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of 172 percent. The expected return of Encor is

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You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of 172 percent. The expected return of Encor is 3.2 percent with a standard deviation of 1 percent. The expected return of Maestro is 27.4 percent with a standard deviation of 11.2 percent. The correlation between the two stocks is 0.4. What is the composition (weights) of the portfolio? (Round answer to 4 decimal places, eg. 14.5125%) Weight in Encor % Weight in Maestro % What is the portfolio standard deviation? (Round intermediate calculations to 7 decimal places, eg. 0.5125129 and the final answer to 4 decimal places, eg. 14.5125%.) Standard deviation %

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