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8 0 Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, ry. The characteristics

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8 0 Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, ry. The characteristics of two of the stocks are as follows: Stock Expected Return Standard Deviation 254 10 Correlation - - Soints 754 Booh Print a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) Herences Rate of return

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