Question 3 (of 10) value: 10.00 points Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate. The characteristics of two of the stocks are as follows: Stock Expected Return 7 % 14 % Standard Deviation 30 % 70 % B Correlation = -1 a. Calculate the expected rate of return on this risk-free portfolio? Istint Can a particular stock portfolio be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) % Rate of return b. Could the equilibrium rybe greater than 9.10%? 0 Yes References eBook & Resources Worksheet Learning Objective: 06-03 Construct efficient portfolios and use the Sharpe ratio to