What must be the risk-free rate

Reference no: EM131925278

Question: Assume that both portfolios A and B are well diversified, that E(rA) = 21%, and E(rB) = 17%. If the economy has only one factor, and ßA = 1.9, whereas ßB = 1.4, what must be the risk-free rate? (Do not round intermediate calculations. Omit the "%" sign in your response.)

Reference no: EM131925278

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