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b) Portfolio A has an expected return of 10.25 percent and a factor sensitivity of 0.5. Portfolio B has an expected return of 16.2 percent

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b) Portfolio A has an expected return of 10.25 percent and a factor sensitivity of 0.5. Portfolio B has an expected return of 16.2 percent and a factor sensitivity of 1.2. The risk-free rate is 6 percent, and there is one factor. Determine the factor's price of risk. (6 marks)

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