Question
Assume that both portfolios A and B are well diversified, that E ( r A ) = 10%, and E ( r B ) =
Assume that both portfolios A and B are well diversified, that E(rA) = 10%, and E(rB) = 7%. If the economy has only one factor, and A = 1.2, whereas B = 0.7, what must be the risk-free rate? (Do not round intermediate calculations. Round your answer to two decimal places.)
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Personal Finance
Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes
1st Edition
0078698006, 9780078698002
