Question: 6. (5 points) Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a

6. (5 points) Consider the single factor APT. Portfolio A has

6. (5 points) Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of .7 and an expected return of 17%. The risk-free rate of return is 8%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio? and a long position in portfolio? A. A; A B. A; B C. B; A

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