Consider the multifactor APT with two factors. Stock A has an expected return of 14.70%, a beta of 1.2 on factor 1, and a beta of 0.6 on factor 2. The risk premium on the factor 1 portfolio is 4.00%. The risk-free rate of return is 6.00%. What is the risk premium on factor 2 if no arbitrage opportunities exist

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.