I have an assignment and I have to calculate the risk-free rate with the following data:
Stock A: E(R) = 10% ; Standard Deviation = 5%.
Stock B: E(R) = 20% ; Standard Deviation = 10%.
I also know that the correlation coefficient of the two assets is -1.
I have tried to use the Sharpe Ratio or the CAPM formula for risk-free rate, but without any success.
Thanks for the help!