FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume both portfoliosAandBare well diversified, thatE(r A )= 15.4% andE(r B )= 16.3%. If the economy has only one factor, and A = 1 while

Assume both portfoliosAandBare well diversified, thatE(rA)= 15.4% andE(rB)= 16.3%. If the economy has only one factor, andA= 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= ???

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

9th Edition

73530700, 978-0073530703

More Books

Students also viewed these Finance questions

Question

★★★★★
The box-like Gaussian surface of Figure encloses a net charge of + 24.0? 0 C and lies in an electric field given by E = [(10.0 +2.00x)i - 3.00j + bzk/N/C, with x and in meters and b a constant. The...

Answered: 1 week ago

Question

★★★★★
Which of the sample information in the preceding question enables us to reject the null hypothesis at = 0.01 and at = 0.10? Discuss.

Answered: 1 week ago

Question

★★★★★
Discuss possible strategies that can be used to improve single-case designs (SCDs).

Answered: 1 week ago

Question

★★★★★
On January 6, Aaron Co. sells merchandise on account to Foley Inc. for $9,200, terms 1/10, n/30. On January 16, Foley pays the amount due. Instructions Prepare the entries on Aaron Co.s books to...

Answered: 1 week ago

Question

★★★★★
The Quick - Food company provides a college meal - service plan. Quick - Food has fixed costs of $ 4 0 0 , 0 0 0 per - term and variable costs of $ 3 0 0 per student. Quick - Food charges $ 7 0 0 per...

Answered: 1 week ago

Question

★★★★★
kindly assist to explain and solve with formulas on a piece of paper. thank you. Helen takes a loan of $50.000 from a bank at a nominal interest rate of 9% per year compounded monthly. The loan is to...

Answered: 1 week ago

Question

★★★★★
State the functions that a household automatic dishwasher performs during its operation cycle. For each function, indicate the primary medium (signals, data, materials, or energy) involved. Describe...

Answered: 1 week ago

Question

★★★★★
Shaanxi mining Company (GH) Ltd. is a Chinese mining company operating in Ghana. Using relevant examples discuss four (4) factors that might propel Shaanxi to engage in Corporate Social...

Answered: 1 week ago

Question

★★★★★
Dying for a Paycheck, Jeffrey Pfeffer. The toll in both excess mortality and health-care costs from harmful workplace practice is exceedingly high in the U.S. Pfeffer demonstrates the severity of the...

Answered: 1 week ago

Question

★★★★★
GIS Introductions This class utilizes a 100% online environment as mode of instructions plus workshops. This short introduction will help others to welcome and get to know you. It also functions as...

Answered: 1 week ago

Question

★★★★★
Item 3 Determine the horizontal and vertical components of force that pin A exerts on the frame. Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
m1 1.0 heading east at 2.8 m/s. m2 1.5kg heading west at 1.1 m.s. m2 collides and heads north at 1.3 m/s. what direction and speed is m1 heading?

Answered: 1 week ago

Question

★★★★★
Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago

Question

★★★★★
1. There are two purposes in this chapter. The first is to break out of habits that have a limiting effect on ones own ability to change. Secondly, it is to understand how the cleaning affects the...

Answered: 1 week ago

Previous Question Next Question