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Assume both portfolios A and B are well diversified, that E ( r A ) = 1 5 . 4 % and E ( r

Assume both portfolios A and B are well diversified, that E(rA)=15.4% and E(rB)=16.3%. If the economy has only one factor, and A=1 while B=1.1, What must be the risk-free rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Risk-free rate
%
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