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Suppose that there are two independent economic factors, F1 and F2, the risk-free rate is 5.5%, and all stocks have independent firm-specific components with a

image text in transcribed Suppose that there are two independent economic factors, F1 and F2, the risk-free rate is 5.5%, and all stocks have independent firm-specific components with a standard deviation of 30%. The following are welldiversified portfolios: What is the expected return-beta relationship in this economy

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