Problem 6-14 (Algo) Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, If. The characteristics of two of the stocks are as follows: Stock Expected Return 9% 13% Standard Deviation 45% 55% A B Correlation - - 1 Required: a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be formed to create a "synthetic" risk-free asset?) (Round your answer to 2 decimal places.) Rate of return % b. Could the equilibrium rf be greater than rate of return? 0 Yes