Assume both portfolios-What must be the risk-free rate

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Assume both portfolios A and B are well diversified, that E(rA) = 12.4% and E(rB) = 13.2%. If the economy has only one factor, and βA = 1 while βB = 1.1, What must be the risk-free rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Reference no: EM13911569

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