Question: 1.5 points Save Answer Consider the multifactor APT with two factors. Portfolio A has a beta of 0.5 on factor 1 and a beta of

1.5 points Save Answer Consider the multifactor APT with two factors. Portfolio A has a beta of 0.5 on factor 1 and a beta of 1.25 on factor 2. The risk premiums on the factor 1 and 2 portfolios are 1% and 7%, respectively. The risk-free rate of return is 7%. If no arbitrage opportunities exist, calculate the expected return (in %) on portfolio A

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