Based on a one-factor model, two portfolios, A and B, have equilibrium expected returns of 9.8% and

Question:

Based on a one-factor model, two portfolios, A and B, have equilibrium expected returns of 9.8% and 11.0%, respectively. If the factor sensitivity of A is 0.8 and that of B is 1.0, what must the riskfree rate be? Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...