Question: Can you please further explain the correct answer 29) Consider the single factor APT. Portfolio A has a beta of 1.1 and an expected return

Can you please further explain the correct answer 29) Consider the single

Can you please further explain the correct answer

29) Consider the single factor APT. Portfolio A has a beta of 1.1 and an expected return of 23% Portfolio B has a beta of 0.6 and an expected return of 19%. The risk- free rate of return is 6%. 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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