The portfolio of an investment firm comprises of two risky assets, 𝑆 and 𝑇, whose returns are denoted by random variables 𝑅𝑠 and 𝑅𝑇 respectively. The mean, the variance and the covariance of the returns are
𝐸(𝑅𝑠 ) = 0.08, 𝑉𝑎𝑟(𝑅𝑠 ) = 0.07,
𝐸(𝑅𝑇 ) = 0.05, 𝑉𝑎𝑟(𝑅𝑇 ) = 0.05, 𝐶𝑜𝑣(𝑅𝑠 , 𝑅𝑇 ) = 0.04.
Let 𝑤 be the proportion of assets allotted to 𝑆 so that the return from the portfolio is 𝑅 = 𝑤𝑅𝑠 + (1 − 𝑤)𝑅𝑇 . The value of 𝑤 which minimizes 𝑉𝑎𝑟(𝑅) is _____(round off to 2 decimal places)