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Q4 (2 points). Suppose that there are two independent economic factors, F1 and F2. The riskfree rate is 6%, and all stocks have independent firm-specific

image text in transcribed Q4 (2 points). Suppose that there are two independent economic factors, F1 and F2. The riskfree rate is 6%, and all stocks have independent firm-specific components with a standard deviation of 35%. The following are well-diversified portfolios: What is the expected return-beta relationship in this economy

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