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Suppose that there are many stocks in the-security market and that the characteristics of stocks A and B are given as follow5: Suppose that it

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Suppose that there are many stocks in the-security market and that the characteristics of stocks A and B are given as follow5: Suppose that it is possible to borrow at the risk-free rate, rf. What must be the value of the risk-free rate? (Hint Think about constructing a risk-free portfolio from stocks A and B ) (Do not round intermediate calculations. Round your answer to 3 decima places.)

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