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Assume that both portfolios A and B are well diversified, that A/A) = 16%, and Arg) = 14%. If the economy has only one factor,

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Assume that both portfolios A and B are well diversified, that A/A) = 16%, and Arg) = 14%. If the economy has only one factor, and AA = 1.0, whereas g = 0.8, 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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