Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, ry. The characteristics of two of the stocks are as follows: Stock 8 Correlation --1 Required: Expected Standard: Return Deviation 6% 20% 10% sex a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be formed to create a "synthetic" risk-free asset?) (Round your answer to 2 decimal places.) Rate of return b. Could the equilibrium ry be greater than rate of return? O Yes No