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You compute the expected returns and volatilities of stocks A and B as E(RA)=4.1%, E(RB)=10.0%, o(RA)=17.2%, and o(RB)=13.3%. The correlation between RA and Rg is

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You compute the expected returns and volatilities of stocks A and B as E(RA)=4.1%, E(RB)=10.0%, o(RA)=17.2%, and o(RB)=13.3%. The correlation between RA and Rg 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

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