Some countries in the Middle East have well-functioning stock markets, but do not have markets for government borrowing. The absence of markets for government borrowing is due to the fact that these governments do not borrow money. If they ever decide to borrow money, what must be the rate (risk-free rate) for that borrowing?

The borrowing rate will depend on the following data. The data shows the distributional characteristics of two stocks (ADA Corporation and OF Corporation). The correlation coefficient between the returns of both stocks is -1.

Assets	Expected Return	Standard Deviation
ADA Corporation	12.67%	8.37%
OF Corporation	9.25%	6.95%