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Business, 06.04.2021 01:00 NeriyahY

Consider the single factor APT. Portfolio A has a beta of 1.1 and an expected return of 23%. Portfolio B has a beta of .6 and an expected return of 19%. The risk-free rate of return is 6%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio and a long position in portfolio .

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Consider the single factor APT. Portfolio A has a beta of 1.1 and an expected return of 23%. Portfol...
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