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18) The correlation between these two stocks is -1. Suppose that it is possible to borrow at the risk free rate. What must be the

18) The correlation between these two stocks is -1. Suppose that it is possible to borrow at the risk free rate. What must be the value of the risk free rate in absence of arbitrage opportunities? Stock A B 0.1377 Expected Return 13% 15% Standard Deviation 5% 8%

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