Question
Assume that both portfolios A and B are well diversified, that E ( r A ) = 21%, and E ( r B ) =
Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 16%. If the economy has only one factor, and A = 1.4, whereas B = 1.0, what must be the risk-free rate?
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
