Question: Show me the steps to solve Problem 7 - 1 2 Suppose that there are many stocks in the security market and that the characteristics

Show me the steps to solve Problem 7-12
Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows:
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.)
Show me the steps to solve Problem 7-12 Suppose that there

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