1. Suppose that many stocks are traded in the market and that it is possible to borrow at the risk- free rate. The characteristics of two of the stocks are as follows. Stock Expected Return Standard Deviation of returns A 5% 20% B 25% 70% 1) (10 points) Suppose that stock A and B are perfectly negatively correlated. Find out the risk-free rate I 2) (5 points) What is the weight of stock A and B in finding the risk free rate