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= = Assume that both portfolios A and B are well diversified, that E(rA) 21%, and E(rg) 16%. If the economy has only one

= = Assume that both portfolios A and B are well diversified, that E(rA) 21%, and E(rg) 16%. If the economy has only one factor, and 6A 1.4, whereas 6g 1.0, what must be the risk-free rate? (Do not round intermediate calculations. Round your answer to two decimal places.) Risk-free rate %

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