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

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8.Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, i The characteristics of two of the stocks are as follows: StockExpected ReturnStandard Deviation 11% 20 % 35 % 65 % Correlation =-1 a. Calculate the expected rate of return on this risk-free portfolio? (Hint- Can a particular stock portfolito be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) Rate of return

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