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Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1. The

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Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1. The following information is also given: E(VA) = 8%, E(re) = 2%, A = 15%, p = 9%. What is the equilibrium risk- free rate in this economy? (6 points)

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