Consider the multifactor apt with two factors. stock a has an expected return of 17.6%, a beta of 1.45 on factor 1 and a beta of .86 on factor 2. the risk premium on the factor 1 portfolio is 3.2%. the risk-free rate of return is 5%. what is the risk-premium on factor 2 if no arbitrage opportunities exit? a) 9.26% b) 3% c) 4% d) 7.75% e)none of the above

"a" determine whether sage found the correct quotient. show your work

step-by-step explanation:

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step-by-step explanation:

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answer: 5 17/33 % (to the tenth)

step-by-step explanation:

he guessed: 34.5 pounds

actual weight is 32.7

there for he is off:

34.5 -32.7 = 1.8

32.7 is the 100%

1.8 represents %? of 32.7

therefore:

32.7   - 100%

1.8     -     x%

x= 1.8*100%/32.7% = 18*100%/327%

x=1800%/327%   = (5 165/327)%

to the tenth:

5 17/33 %