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Assume that portfolios A and B are both well diversified and that E(rA) = 16%, and E(rB) = 11%. If the economy has only one
Assume that portfolios A and B are both well diversified and that E(rA) = 16%, and E(rB) = 11%. If the economy has only one factor, and A = 1.1, whereas B = 0.6, what must be the risk-free rate? Note: Do not round intermediate calculations. Round your answer to two decimal places
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
