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Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows: Suppose that
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.
Riskfree rate
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