Blansery8518 Blansery8518
  • 24-05-2023
  • Mathematics
contestada

Assume both portfolios A and B are well diversified, that E(rA) = 12.8% and E(rB) = 14.0%. If the economy has only one factor, and βA = 1 while βB = 1.2, what must be the risk-free rate?

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