Two assets with expected rates of return $\bar{r}_{1}$ and $\bar{r}_{2}$ have identical variances and a known correlation coefficient $ho$. There is a risk-free asset with rate of return $r_{f}$.

(a) Find an expression for the optimal (Markowitz) weights for the two assets.

(b) For the parameters $\bar{r}_{1}=.10, \bar{r}_{2}=.08, r_{f}=.05, ho=.6$, find the weight of asset 1 .