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Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 5%, and all stocks have independent firm-specific components with a standard

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Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 5%, and all stocks have independent firm-specific components with a standard deviation of 48%. Portfolios A and B are both well diversified. What is the risk premium of the M1 factor? (Do not round intermediate calculations. Enter your answer in percentage points. Round your answers to 2 decimal places.)

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