Question
Assume that both portfolios A and B are well diversified, that E ( r A ) = 24%, and E ( r B ) =
| Assume that both portfolios A and B are well diversified, that E(rA) = 24%, and E(rB) = 19%. If the economy has only one factor, and A = 1.7, whereas B = 1.3, what must be the risk-free rate? (Do not round intermediate calculations. Omit the "%" sign in your response.) |
| Risk-free rate | % |
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
0471361909, 978-0471361909
