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Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, f_f. The characteristics of two

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Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, f_f. The characteristics of two of the stocks are as follows: Calculate the expected rate of return on this risk-free portfolio? (Round your answer to 2 decimal places.) Could the equilibrium r_f be greater than 12.00%? Yes No

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