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Assume that both portfolios A and B are well diversified, that E(rA) = 0.12, and E(rB) =0.08. If the economy has only one factor, and

Assume that both portfolios A and B are well diversified, that E(rA) = 0.12, and E(rB) =0.08. If the economy has only one factor, and A = 1.57, whereas B = 0.74, what must be the factor risk premium?

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