In the single-index APT model, consider two well-diversified portfolios with betaA equals 0.9 and betaB...
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Finance
In the single-index APT model, consider two well-diversified portfolios with betaA equals 0.9 and betaB equals 1.1. If the market excess return is market rate - risk-free rate = 3%, what is the value of rA - rB ?
a) N.A
b) 0%
c) -0.6%
d) 1.2%
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