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Question on Diversification: Consider two perfectly negatively correlated risky securities A and B. Security A has an expected rate of return of 10% and a

Question on Diversification: Consider two perfectly negatively correlated risky securities A and B. Security A has an expected rate of return of 10% and a variance of 0.0144. Security B has an expected rate of return of 6% and a variance of 0.0081. What is the No-Arbitrage Risk-free rate of interest (up to 3 dp: example 0.123) ?

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