Question
Assume both portfolios A and B are well diversified, that E ( r A ) = 13.2% and E ( r B ) = 14.3%.
| Assume both portfolios A and B are well diversified, that E(rA) = 13.2% and E(rB) = 14.3%. If the economy has only one risk factor, and A = 1 while B = 1.2, what must be the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal places.) |
| Risk-free rate | % |
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R In Finance And Economics A Beginners Guide
Authors: Abhay Kumar Singh, David Edmund Allen
1st Edition
9813144467, 978-9813144460
