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