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6. 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

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6. 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. Standard Deviation of returns Expected Return Stock 40% 8% 60% 13% B 1) (5 points) Suppose that stock A and B are perfectly negatively correlated. What can the risk-free rate? oorstore einen 2) (5 points) What is the weight of stock A and B in finding the risk free rate

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