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Assume a perfect capital market in which investors are constrained to holding portfolios that consist only of a single risky asset, that borrowing or lending
Assume a perfect capital market in which investors are constrained to holding portfolios that consist only of a single risky asset, that borrowing or lending at a riskless interest rate is possible, and that in equilibrium the following holds: Security i: ri sigmai Security j: rj sigmaj What is the riskless rate of interest in this market
Assume a perfect capital market in which investors are constrained to holding portfolios that consist only of a single risky asset, that borrowing or lending at a riskless interest rate is possible, and that in equilibrium the following holds:
Security i: ri sigmai
Security j: rj sigmaj
What is the riskless rate of interest in this market
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