7. Hype Research has identified two systematic factors that affect U.S. stock returns. The factors are growth in Robinhood trading accounts and changes in fast-food consumption. Robinhood trading account is expected to grow at 5%, and fast-food consumption is expected to increase by 3%. You are analyzing a stock that has a beta of 1.5 on the Robinhood trading accounts factor and 0.4 on the fast-food consumption factor. It currently has an expected return of 10%. However, if trading account actually grows 8.5% and fast-food consumption drop 6%, what is your best guess of the stock's return? 8. Consider the single factor APT. Portfolio A has a beta of 1.14 and an expected return of 20%. Portfolio B has a beta of 67 and an expected return of 15%. The risk-free rate of return is 5.5%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio and a long position in portfolio because portfolio A provides risk premium of and portfolio B provides risk premium of which should converge under no-arbitrage condition