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Suppose asset returns are given according to a single-factor model, and consider two portfolios A and B. Portfolio A has a beta of 1.0 and

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Suppose asset returns are given according to a single-factor model, and consider two portfolios A and B. Portfolio A has a beta of 1.0 and an expected return of 13%. Portfolio B has a beta of 1.5 and an expected return of 14%. The risk-free rate is 5%. Are the expected returns on these two portfolios consistent with a single-factor model? O Cannot be determined Yes O No

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