1- To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is 1. Use the following information.

High economic growth: 25% probability of occurence, 39% expected return on stock A, 56% expected return on stock B

Moderate economic growth: 20% probability of occurence, 18% expected return on stock A, 26% expected return on stock B

Recession: 55% probability of occurence, -6% expected return on stock A, -16% expected return on stock B

Weight of stock A: ...%

Weight of stock B: ...%

2- The expected return ofCulveris14.8percent, and the expected return ofLarkspuris22.8percent. Their standard deviations are9.8percent and22.8percent, respectively, and the correlation coefficient between them is zero.

What is the expected return and standard deviation of a portfolio composed of30percentCulverand70percentLarkspur?