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Assume both portfolios A and B are well diversified, that E(r_A) = 14.0% and E(r_B) = 16.4%. If the economy has only one factor, and beta_A = 1 while beta_B = 1.3. What must be the risk-free rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Risk-free rate %

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