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 Expected Standard Return Deviation 84 B 124 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.) 404 60% Rate of return 1% b. Could the equilibrium rf be greater than rate of return? Yes No