What must be the risk-free
Assume that both portfolios A and B are well diversified, that E(rA) = 22%, and E(rB) = 17%. If the economy has only one factor, and βA = 1.5, whereas βB = 1.1, what must be the risk-free rate?
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this is the only information provided by my instructoryour client - an asphalt paver located here in the state of
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