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Business, 27.03.2020 00:49 powellmom5

Consider a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio B has a beta of 0.8 and an expected return of 12%. 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 a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio...

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