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: Stock A: Expected return = 4% and standard deviation = 12.50% Stock B: Expected return - 6% and standard deviation - 14.50% If correlation between stock A and stock B is -1 (perfectly negatively correlated), then which of the following represents a value closest to equilibrium risk-free rate? 4.51% 4.749 4.93% 4.23% 3.9396 None of the above