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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, rs. 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, rs. The characteristics of two of the stocks are as follows: Expected Return 7% Stock A B Correlation = -1 Standard Deviation 45% 55% 10% Could the equilibrium rp be greater than, equal to, or less than your answer in previous question? greater than less than equal to

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