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Business, 26.08.2020 19:01 krandall232

Consider the single factor APT. Portfolio A has a beta of 1.8 and an expected return of 21%. Portfolio B has a beta of .8 and an expected return of 21%. The risk-free rate of return is 12%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio and a long position in portfolio . A: A;A
B: A;B
C: B;B
D: B;A

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Consider the single factor APT. Portfolio A has a beta of 1.8 and an expected return of 21%. Portfol...
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