Consider Table $1,$ which presents expected returns and standard deviations for two stocks, stock

$1,$ and stock $2,$ and for the riskless asset. The correlation between the returns between stock $1$

and stock $2$ is also present. Answer questions $1$ to $4.$

Form a portfolio of stock $1,$ stock $2,$ and the riskless asset. The weight of stock $1$ in the tangency

portfolio is closest to:

a$.50\%.$

b$.63\%.$

c$.37\%.$

d$.24\%.$

Form a portfolio of stock $1,$ stock $2,$ and the riskless asset. The expected return and the standard

deviation risk of the tangency portfolio are closest to:

a$.4\mathrm{.}55\%$ and $5\mathrm{.}68\%,$ respectively.

b$.6\mathrm{.}00\%$ and $6\mathrm{.}32\%,$ respectively.

c$.7\mathrm{.}88\%$ and $6\mathrm{.}95\%,$ respectively.

d$.5\mathrm{.}67\%$ and $7\mathrm{.}02\%,$ respectively.