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Question 4 (8 points) (1) Consider the following data for a one-factor economy where the market is the single factor. E(r) 14% 89 Beta 2.0
Question 4 (8 points) (1) Consider the following data for a one-factor economy where the market is the single factor. E(r) 14% 89 Beta 2.0 0.5 Portfolio (1) What are the risk-free rate and expected market return in this economy? (4pts)
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