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Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, $r_{f}$. 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.) Rate of return $%$ b. Could the equilibrium $rf$ be greater than $11.10%$ ? Yes No

Given,Risk free portfolio has Zero standard deviationLet wA be the weight of stock A and wB be the weight of stock BCorrela