Consider the expected return and volatility of returns for Coca-Cola and Intel. Assume thatthe assets are perfectly negatively correlated, i.e., their correlation coefficient is ρ = -1.Asset Expected Return VolatilityE(R) σ(R)Coca-Cola 0.09 0.12Intel 0.28 0.19
(a) Calculate the portfolio weights, i.e., kCoca-Cola, kIntel, that remove all risk.
(b) What is the riskfree rate of interest in this economy?
see attachment for a better chart
![313_4444444.JPG](https://secure.tutorsglobe.com/CMSImages/313_4444444.JPG)