UI PUILOILO Theory (HW) Saved Othe Help Save & Exit Submit Check my work Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, Is. The characteristics of two of the stocks are as follows: Stock B Correlation - -1 Expected Return Standard Deviation 98 308 160 70% a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) Rate of return % b. Could the equilibrium rgbe greater than 11.10%? Yes O No Next > 8 of 20