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  3. 3 suppose that there are many stocks in the securi

3 Suppose that there are many stocks in the security market and that the characteristics...

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3 Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows: Stock Expected Return Standard deviation 19 Correlation = -1 125 10 points Book Suppose that it is possible to borrow at the risk-free rate.rp. 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.) Print Risk free role

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