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In: Finance

I am given: Risk-free rate 6.0000% First Stock Return 7.0000% Second Stock Return 10.0000% First Stock...

I am given:

Risk-free rate 6.0000%
First Stock Return 7.0000%
Second Stock Return 10.0000%
First Stock Standard Deviation 15.0000%
Second Stock Standard Deviation 20.0000%
Stock Corelation 30.0000%
Target Return 7.5000%

I need to find:

Risky Weight 1
Risky Weight 2
Expected Return
Varience
Standard Devation
Sharpe Ratio

How do I find Risky weight one and two?

These are the given formulas:

Solutions

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