Question: (5 points) Consider a two-factor model: R = E(R) + BF1 + B2F2 + Ei with some well-diversified portfolios of which the expected returns and

(5 points) Consider a two-factor model: R = E(R) + BF1 + B2F2 + Ei with some well-diversified portfolios of which the expected returns and the corresponding 3s are: Portfolio E(R) Bil B12 A 6% 0.5 0.5 B 6.7% 1.5 0.2 D 6% 1.5 -0.5 Suppose APT holds, find the equation that describes the equilibrium returns

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