Calculate the risk-free assets return


Problem

In a market where the CAPM holds, the share in the life-science company Assa Halloj! an expected return of 18.02% and a covariance (calculated in percentages not in decimal form) with the market portfolio of 1210.14. The market portfolio, in turn, has an expected return of 12.08% and a standard deviation of 27.00% Calculate the risk-free asset's return.

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Microeconomics: Calculate the risk-free assets return
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