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Business, 19.03.2020 21:41 portedon6626

Assume both portfolios A and B are well diversified, that E(rA) = 15.0% and E(rB) = 16.8%. If the economy has only one factor, and βA = 1 while βB = 1.2, what must be the risk-free rate?

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Assume both portfolios A and B are well diversified, that E(rA) = 15.0% and E(rB) = 16.8%. If the ec...

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