Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as fo

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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

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Suppose that there are many stocks in the security market andthat the characteristics ofstocks A and B are given asfollows:
Suppose that it is possible to borrow at the risk-freerate, rf. What must be the value of therisk-free rate? (Hint: Think about constructing arisk-free portfolio fromstocks A and B.) (Donot round intermediate calculations. Round your answer to 3 decimalplaces.)
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