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Required: Assume both portfolios A and B are well diversified, that E(ra) = 12.8% and E(rs) = 14.0%. If the economy has only one factor,
Required: Assume both portfolios A and B are well diversified, that E(ra) = 12.8% and E(rs) = 14.0%. If the economy has only one factor, and BA = 1 while BB = 1.2, what must be the risk-free rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Risk-free rate %
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ISE Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
18th International Edition
1265074658, 9781265074654
