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Business, 31.03.2020 00:40 Tiny5375

Consider the multifactor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are 5% and 6%, respectively. Stock A has a beta of 1.2 on factor-1, and a beta of 0.7 on factor-2. The expected return on stock A is 17%. If no arbitrage opportunities exist, the risk-free rate of return is

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Consider the multifactor APT with two factors. The risk premiums on the factor 1 and factor 2 portfo...
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