Question: To achieve a zero standard deviation for a portfolio, calculate the weights of stocks A and B, assuming the correlation coefficient is -1. Use the

To achieve a zero standard deviation for a portfolio, calculate the weights of stocks A and 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 stock A % Weight Stock B %

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