# 11. Suppose Foxgo is an ISO app development company withits stock expected return of 23% and its sto

11. Suppose Foxgo is an ISO app development company withits stock expected return of 23% and its stock volatility of 53%.Cowump is a global paper company with its stock expcected return of8% and its stock volatility is 17%. If the correlation betweenFoxgo and Cowump is zero. The risk-free rate is 2% peryear. 11.1 Your uncle is interested in constructing aportfolio by using thse two stocks however he prefers having thesame volatility as Cowump. If short selling is not feasible, thenwhat is the weight of each stock respectively? (Choose the closestanswer) A) 21.3 of Foxgo, 78.6% of Cowump. B) 50% of Foxgo, 50% of Cowump C) 18.7% of Foxgo, 81.3 of Cowupm D) 32.4% of Foxgo, 67.6 of Cowump. 11.2 If your uncle wants to optimize the volatility ofhis portfolio and short selling is not feasible, what is the weightof each stock respectively? (Choose the clocestanswer) A) 8.8% of Foxgo, 91.2% of Cowump B) 17.3 % of Foxgo, 82.7% of Cowump C) 32.4 % of Foxgo, 67.6% of Cowump D) 5.2% of Foxgo, 94.8% of Cowump . . .