Expected Return Standard Deviation

Stocks, S 14 30

Bonds, B 6 15

The correlation between stocks and bonds is (S,B) = 0.05

Note: I've entered the expected returns and standard deviations as whole numbers (not decimals)

Treat the risk-free rate as the number 2 not 0.02 or 2%.

The risk-free rate is 2 percent. The CAL that is tangent to the portfolio frontier of stock and bonds has an expected return equal to 9.5 percent.

You wish to construct an efficient portfolio with an expected return equal to 8 percent. What are the asset weights in the portfolio? That is, what are the weight of stocks, bonds and bills in the portfolio? Please show your work.