Question: 17. [2 points] Suppose Intel's stock has an expected return of 26% and a volatility of 50%, while Coca- Cola's has an expected return of

17. [2 points] Suppose Intel's stock has an expected return of 26% and a volatility of 50%, while Coca- Cola's has an expected return of 6% and volatility of 25%. If these two stocks were perfectly positively correlated (i.e., their correlation coefficient is +1). Calculate the portfolio weights that minimize the volatility. a. Intel: 33.33%, Coca-Cola: 66.67% b. Intel: 66.67%, Coca-Cola: 33.37% c. Intel: 100%, Coca-Cola: 0% d. Intel: 0%, Coca-Cola: 100%

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