Consider a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio B has a beta of 0.75 and an expected return of 12%. The riskfree rate of return is 4%. a. Draw a fully labelled diagram on the space provided showing the expected return against beta of Portfolios A and B. [5 marks] b. Is there any arbitrage opportunity? If yes, describe the steps clearly how to execute the arbitrage trade with details of dollar amount if you can use a sum with a nominal amount of $500,000 and what is the profit of the arbitrage trade. [9 marks]