Question: please answer You have estimated the SIM model for stocks A and B. Stock A has an alpha of 0.5% and a standard deviation of

please answer

You have estimated the SIM model for stocks A and B. Stock A has an alpha of 0.5% and a standard deviation of residuals of 26.0%. Stock B has an alpha of 1.3% and a standard deviation of residuals of 35.0 \%. What is the weight of stock A in the optimal active portfolio consisting of stocks A and B ? The weight of stock A in the optimal active portfolio is Enter your answer to 2 decimal places eg if your answer is 0.02123% enter as 2.12%

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