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Assume that the following portfolios A and B are well diversified, with E[ra] 12% and ElrbJ-9%. In a one factor. arbitrage-free, economy with Ba 12
Assume that the following portfolios A and B are well diversified, with E[ra] 12% and ElrbJ-9%. In a one factor. arbitrage-free, economy with Ba 12 and p 08 what is the risk free interest rate? 3% @ 4% 2% 5%
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