Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, r ƒ . The characteristics of two of the stocks are as follows: Stock Expected Return Standard...

Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate,r_ƒ
. The characteristics of two of the stocks are as follows:

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.)

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  Yes

  
  

  
  
  
  


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  No