Assume both portfolios A and B are well diversified, that E(rA) = 14.4% and E(rB) = 16.0%. If the economy has only one factor, and ßA = 1 while ßB = 1.2,What must be the risk-free rate?
Answer: 6.4
Assume both portfolios A and B are well diversified, that E(rA) = 14.4% and E(rB) = 16.0%. If the economy has only one factor, and ßA = 1 while ßB = 1.2,What must be the risk-free rate?
Answer: 6.4
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.