1. 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%.)

High economic growth

Probability of occurrence: 25%--Expected Return on stock A:39%--Expected return on stock B:56%

Medium economic growth

Probability of occurrence: 20%--Expected Return on stock A:18%--Expected return on stock B:26%

Recession

Probability of occurrence: 55%--Expected Return on stock A:-6%--Expected return on stock B:-16%

Weight of stock A = ?

Weight of stock B =?

2. The expected return of Culver is 14.8 percent, and the expected return of Larkspur is 22.8 percent. Their standard deviations are 9.8 percent and 22.8 percent, respectively, and the correlation coefficient between them is zero.

What is the expected return and standard deviation of a portfolio composed of 30 percent Culver and 70 percent Larkspur? Round intermediate calculations to 6 decimals, final answers to 2