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Show me the steps to solve Problem 7 - 1 2 Suppose that there are many stocks in the security market and that the characteristics
Show me the steps to solve Problem
Suppose that there are many stocks in the security market and that the characteristics of stocks A and are given as follows:
Suppose that it is possible to borrow at the riskfree rate, What must be the value of the riskfree rate? Hint: Think about
constructing a riskfree portfolio from stocks A and Do not round intermediate calculations. Round your answer to decimal
places.
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