(2) Suppose in a hypothetical economy, there exist two financial assets A and B, and...
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(2) Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1. The following information is also given: E(ra) = 8%, E (TB) = 2%, OA - 15%, OB = 9%. What is the equilibrium risk- free rate in this economy? (6 points)
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