Question: E ( r _ { A } ) = 1 6 % ; E ( r B ) = 1 4 % . If;

E(r_{A})=16%; E(r B )=14\%.If; sigma_{A} Assume that both portfolios A and B are well diversified , that and the economy has only one factor , and 1.0 whereas what must be the risk - free rate ?( Do not round intermediate calculations . Round your answer to two decimal places .) sigma_{B}=0.8

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