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Suppose that the risky assets A and B have the following characteristics: E(R-0.26; E(R)-0.06; (RA)-0.5; (RB)-0.25, the correlation between the returns of A and B
Suppose that the risky assets A and B have the following characteristics: E(R-0.26; E(R)-0.06; (RA)-0.5; (RB)-0.25, the correlation between the returns of A and B is equal to -1. Suppose also that these are the only two risky assets available in the economy. What is the risk-free rate of interest in the economy
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