Stock a expected return 8 standard deviation 40 stock b, Financial Management

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Stock a expected return 8 standard deviation 40 stock b

Stock A expected return 8%, standard deviation 40%; stock B expected return is 13%, standard deviation is 60%.The correlation between these two stocks is -1. Can a particular portfolio constructed by stock A and stock B be a substitute for risk-free asset?

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Financial Management: Stock a expected return 8 standard deviation 40 stock b

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Financial Management: Stock a expected return 8 standard deviation 40 stock b

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