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Business, 30.10.2021 05:30 Arrrra

Consider the single factor APT. Portfolio A has a beta of 1.2 and an expected return of 24%. Portfolio B has a beta of 0.8 and an expected return of 20%. The risk-free rate of return is 7%. 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 1.2 and an expected return of 24%. Portfol...
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