You compute the expected returns and volatilities of stocks A and B as

E(R_A)=3.2%, E(R_B)=9.3%, (R_A)=12.4%, and (R_B)=5.5%.

The correlation between R_A and R_B is negative and equal to 1. Combine the two assets, A and B, to get a risk-free portfolio. What must be the value of the risk-free borrowing and lending rate? Report your answer in decimal form and round to 4 decimal places.

You compute the expected returns and volatilities of stocks A and B as E(RA)=3.2%, E(RB)=9.3%, o(RA)=12.4%, and o(RB)=5.5%. The correlation between RA and RB is negative and equal to -1. Combine the two assets, A and B, to get a risk-free portfolio. What must be the value of the risk-free borrowing and lending rate? Report your answer in decimal form and round to 4 decimal places