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Suppose portfolios A and B are both well-diversified with the following properties Portfolio Bi on Fi B2 on F2 Expected return A -1.3 0.5 0.60%

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Suppose portfolios A and B are both well-diversified with the following properties Portfolio Bi on Fi B2 on F2 Expected return A -1.3 0.5 0.60% B 0.8 -0.6 -0.80% There are two independent economic factors, F1 and F2 The risk-free rate is 1% What is the expected return-beta relationship in this economy? Attach File Browse Loca Fe Browse Content Connection

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