Just need part B done.

Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, g. The characteristics of two of the stocks are as follows: Stock B Correlation = -1 Expected Return 10% 18% Standard Deviation 25% 75% 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.) Rate of retum 12.00% b. Could the equilibrium ry be greater than 12.00%? o Yes NO