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Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as fo
Posted: Fri Jul 01, 2022 7:40 am
by answerhappygod
- Suppose That There Are Many Stocks In The Security Market And That The Characteristics Of Stocks A And B Are Given As Fo 1 (73.85 KiB) Viewed 23 times
Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows: Stock A B Expected Return 14% 18 Correlation = -1 Standard Deviation 7% 9 Suppose that it is possible to borrow at the risk-free rate, rf. What must be the value of the risk-free rate? (Hint: Think about constructing a risk-free portfolio from stocks A and B.) (Do not round intermediate calculations. Round your answer to 3 decimal places.) Risk-free rate %