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please answer all questions. Problem 6.3 (a) Suppose that many stocks are traded in the market and that it is possible to borrow at the

please answer all questions.
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Problem 6.3 (a) 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 6% Standard Deviation 25% 75% 10% Correlation-1 Calculate the expected rate of rotum on this risk-free portfolio? (Mint Can a particular stock portfolio be substituted for the risk-free asset?) (Enter your answer in percentage points. Round your answer to 2 decimal places.) QUESTION 6 Problem 6.3 (b) Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-fron rate, ry. The characteristics of two of the stocks are as follows: Stock Expected Return 6% 10% Standard Deviation 25% 75% Correlation-1 Could the equilibrium ry be greater than 7.00%? Yes NO

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