Assume both portfolios a and b are well diversified that


Assume both portfolios A and B are well diversified, that E(rA) = 12.6% and E(rB) = 13.6%. If the economy has only one risk factor, and βA = 1 while βB = 1.2, what must be the risk-free rate?

(Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Assume both portfolios a and b are well diversified that
Reference No:- TGS02673836

Expected delivery within 24 Hours