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Assume that portfolios A and B are both well diversified and that E ( r A ) = 2 0 % , and E (

Assume that portfolios A and B are both well diversified and that E(rA)=20%, and E(rB)=15%. If the economy has only one factor, and ?6AA=1.3, whereas BB=0.8, what must be the risk-free rate?
Note: Do not round intermediate calculations. Round your answer to two decimal places.
Risk-free rate
%
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