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Assume that both portfolios A and B are well diversified, that E(rA) = 14%, and E(rB) = 11%. If the economy has only one factor, and βA = 1.8, whereas βB = 1.4, what must be the risk-free rate? (Do not round intermediate calculations. Round your answer to two decimal places.)
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Assume that both portfolios A and B are well diversified, that E(rA) = 14%, and E(rB) = 11%. If the...
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