Question
3. Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 17%. If the economy has only one
3. Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 17%. If the economy has only one factor, and A = 1.9, whereas B = 1.4, what must be the risk-free rate? (Do not round intermediate calculations. Omit the "%" sign in your response.)
Risk-free rate ______%???
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International Finance Exchange Rates And Financial Flows In The International Financial System
Authors: Heather D. Gibson
1st Edition
0582218128, 978-0582218123
