Suppose? Intel's stock has an expected return of 20.0% and a volatility of 3.0%, while? Coca-Cola's has an expected return of 7.0% and volatility of 3.0%. If these two stocks were perfectly negatively correlated? (i.e., their correlation coefficient is negative −1?),
a. Calculate the portfolio weights that remove all risk.
b. If there are no arbitrage? opportunities, what is the? risk-free rate of interest in this? economy?