Question: keep getting a wrong rate of return. Suppose that many stocks are traded in the market and that it is possible to borrow at the

keep getting a wrong rate of return.

Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate. rf. 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.) b. Could the equilibrium ry be greater than 910% ? Yes No

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