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What is the risk-free rate in the model

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Question - Consider a one-factor Arbitrage Pricing Theory model. There are two well-diversified portfolios: A and B. Portfolio A's expected return is 20 percent and its beta is 0.75; Portfolio B's expected return is 10 percent and its beta is 0:25. What is the risk-free rate in the model?

Reference no: EM132759324

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