Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate. The characteristics of two of the stocks are as follows Stock Expected Return 8% 12x Standard Deviation 40x 60x 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 ry be greater than rate of return? Yes O NO