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% 38.0% 55.0% Moderate growth 20% 17.0% 25.0% Recession 55% -5.0% -15.0%

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%.) Probability of occurrence State of the economy High growth Moderate growth Recession 25% Expected return on stock A in this state 38.0% 17.0% -5.0% Expected return on stock B in this state 55.0% 25.0% - 15.0% 20% 55% Weight of stock A % Weight of stock B %