Question
Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 17%. If the economy has only one factor,
Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 17%. If the economy has only one factor, and A = 1.9, whereas B = 1.4, what must be the risk-free rate? (Do not round intermediate calculations. Omit the "%" sign in your response.)
Risk-free rate: %
Please show math....
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Handbook Of Portfolio Mathematics
Authors: Vince
1st Edition
0471757683, 978-0471757689
