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Consider an economy with two factors. You identify three well-diversified portfolios A, B and C. Their details are: Portfolio Expected returnBeta (1 factor)Beta (2d factor)

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Consider an economy with two factors. You identify three well-diversified portfolios A, B and C. Their details are: Portfolio Expected returnBeta (1 factor)Beta (2"d factor) 0.75 0.25 1.25 28% 18% 28% 1.8 1.1 1.5 What is the risk-free rate in this economy? Show your calculations

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