Suppose that many stocks are traded in the market and that it is possible to borrow at the risk$-$free rate, rf$.$ The characteristics of two of the stocks are as follows:StockExpectedReturn$6\%10\%$Standard Deviation$20\%80\%2$pointsCorrelation $=-1$eBookRequired: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.$)$PrintRate of returnSatM Question $8-$ Ch$6$ HW $-$ CHelpSave & ExitSubmb. Could the equilibrium rf be greater than rate of return? Yes No