Consider a single factor APT. We have the following information about the portfolio A, portfolio B, and risk-free rate of return. Please answer the following questions. Portfolio beta R Rf A 2.3 28% 4% B 1.9 20% 4% Select the correct solutions. 1. The arbitrage strategy it to short portfolio A and use the proceeds to take a long position (50%) in A and (50%) in risk free asset 2. The arbitrage profit will be 3.83% 3. The arbitrage profit is 0.5% 4. The ratio of risk premium to beta for portfolio A is 0.104 5. The arbitrage profit is 5% 6. The ratio of risk premium to beta for portfolio B is 7.67% 7. The ratio of risk premium to beta for portfolio B is 0.084 8. The ratio of risk premium to beta for portfolio A is 10% 9. The arbitrage strategy is to short portfolio B and use the proceeds to take a long position (75%) in A and (25%) in risk free asset 10. For portfolio A , the ratio of risk premium to beta is 10% 11. The ratio of risk premium to beta for portfolio A is 9% 12. The ratio of risk premium to beta for portfolio B is 8.67% 13. The arbitrage strategy: is to short portfolio A and B and use the proceeds to take a long position in risk free asset 14. The arbitrage strategy is to short portfolio B and use the proceeds to take a long position (82.61%) in A and (17.39%) in risk free asset. Having issues with this practice question. Getting confused with all the different formulas.