Consider a one-factor model of expected returns along with the following well-diversified portfolios and determine whether any

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Consider a one-factor model of expected returns along with the following well-diversified portfolios and determine whether any arbitrage opportunity exists if short-selling of risky assets is prohibited. If there is an opportunity, quantitatively illustrate your arbitrage strategy over a 1,000,000 trade.

	p1	p2	f
beta	1.20	.20	.00
E(R)	.15	.05	.04

PLEASE GIVE ME STEP BY STEP CORRECT ANSWER. I POSTED THIS QUESTION BEFORE AND I DIDNT GET STEP BY STEP ANSWER. PLEASE ITS URGENT ALSO DONT PASTE SCREENSHOT OF EXCEL SHEET

Posted Date: May 19, 2024 01:11 PM

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Consider a one-factor model of expected returns along with the following well-diversified portfolios and determine whether any

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