Assume that both portfolios A and B are well diversified, that E(rA) = 12%, and E(rB) =

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Assume that both portfolios A and B are well diversified, that E(rA) = 12%, and E(rB) = 9%. If the economy has only one factor, and βA = 1.2, whereas βB = .8, what must be the risk-free rate?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 07:52 AM

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Assume that both portfolios A and B are well diversified, that E(rA) = 12%, and E(rB) =

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Investments

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