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Business, 31.03.2020 04:23 robert7248

Assume both portfolios A and B are well diversified, that E(rA) = 13.4% and E(rB) = 15.0%. If the economy has only one factor, and βA = 1 while βB = 1.2, what must be the risk-free rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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