Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, If. The characteristics of two of the stocks are as follows: Stock Expected Return 10% 17% Standard Deviation 30% 70% A B Correlation = -1 Required: 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 rf be greater than rate of return? O Yes O No