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Assume both portfolios A and B are well diversified, that Elra) = 14.4% and ElrB) = 16.0%. If the economy has only one risk factor,

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Assume both portfolios A and B are well diversified, that Elra) = 14.4% and ElrB) = 16.0%. If the economy has only one risk factor, and BA= 1 while BB= 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 D %

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