6)Assume there is one factor (the market excess return) that drives asset returns. There are two well-diversified portfolios A and B, where portfolio A has an expected returnof 10% and a beta of 2 and portfolio B has an expected return of 8% and a beta of 1. Therisk-free rate is 2%. Does an arbitrage opportunity exist

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.