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(10 points) Consider a well-diversified portfolio, A, in a two-factor economy. The risk- free rate is 5%, the risk premium on the first factor portfolio

(10 points) Consider a well-diversified portfolio, A, in a two-factor economy. The risk- free rate is 5%, the risk premium on the first factor portfolio is 4% and the risk premium on the second factor portfolio is 6%. If portfolio A has a beta of 0.6 on the first factor and 1.8 on the second factor, what is its expected return

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