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(2) Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1.

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(2) Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1. The following information is also given: E(ra) = 8%, E(TB) = 2%, 0A = 15%, OB = 9%. What is the equilibrium risk- free rate in this economy

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