Assume both portfolios a and b are well diversified, that e(ra) = 12.4% and e(rb) = 13.2%. if the economy has only one factor, and βa = 1 while βb = 1.1, what must be the risk-free rate?

direct channel (or producer to consumer)

Explanation:

This channel is appropriate when a producer is trying to introduce an innovative product or service and wants to reach a large audience. The best way a manufacturer or producer can sell its products or services directly to consumer is through internet sales.