Question: Current Attempt in Progress To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation

Current Attempt in Progress

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. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.)

State of the economy

Probability of occurrence

Expected return on stock A in this state

Expected return on stock B in this state

High growth

25% 42.0% 59.0%

Moderate growth

20% 21.0% 29.0%

Recession

55% -9.0% -19.0%

Weight of stock A

enter weight of stock A in percentages %

Weight of stock B

enter weight of stock B in percentages %

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