Question $2$

$2$ pts

Stock A has an expected return of $14\%$ and a standard deviation of $21\%.$ Stock $B$ has an expected return of $8\%$ and a standard deviation of $13\%.$ The correlation between A and B is $-1.$ A portfolio formed from A and $B$ where the portfolio weight in $A$ is $0\mathrm{.}3824$ is the minimum variance portfolio for these two stocks. What is the risk$-$free rate in equilibrium?

$0\mathrm{.}0159$

$0\mathrm{.}0550$

$0\mathrm{.}0465$

$0\mathrm{.}0378$

$0\mathrm{.}1029$