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Assume that both portfolios A and B are well diversified, that E(rA) = 23%, and E(rB) = 18%. If the economy has only one factor,

Assume that both portfolios A and B are well diversified, that E(rA) = 23%, and E(rB) = 18%. If the economy has only one factor, and A = 1.6, whereas B = 1.2, what must be the risk-free rate?

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