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00 Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, is The characteristics of

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00 Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, is The characteristics of two of the stocks are as follows: 10 points Stock A Expected Return 64 124 Standard Deviation 255 754 Correlation -1 ebook Pet a. Calculate the expected rate of return on this risk free portfolio? (Mint Can a particular stock portfolio be substituted for the risk-free asset (Round your answer to 2 decimal places) References Ratinot retum 76 b. Could the equation be greater than 750%* Yes O No

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