Question
Assume that both portfolios A and B are well diversified, that E ( r A ) = 8%, and E ( r B ) =
| Assume that both portfolios A and B are well diversified, that E(rA) = 8%, and E(rB) = 6%. If the economy has only one factor, and A = 1.1, whereas B = 0.7, what must be the risk-free rate? (Do not round intermediate calculations. Omit the "%" sign in your response.) |
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Multinational Financial Management
Authors: Alan C. Shapiro
7th Edition
0471395307, 9780471395300
