Question: You are interested in two stocks: Alcon and Beldon. Both stocks have an expected return of 8 percent. The standard deviation of Alcon is 3

You are interested in two stocks: Alcon and Beldon. Both stocks have an expected return of 8 percent. The standard deviation of Alcon is 3 percent, and the standard deviation of Beldon is 5 percent. You want the weights to be greater than or equal to zero. You want to minimize the standard deviation of the portfolio.

What should the portfolio composition be if the correlation between the two stocks is 0.8?

Weight of investment in Alcon: %

Weight in investment in Beldon: %

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