Question: Consider a two-factor APT. The risk premium for factor1 is 10% and the risk premium for factor2 is 5%. A stock has a beta relative

Consider a two-factor APT. The risk premium for factor1 is 10% and the risk premium for factor2 is 5%. A stock has a beta relative to factor of 0.6 and a beta relative to factor2 of 1.2. If the risk free rate is 2%, what is the expected return on the stock? 8% 149 6% 11% Question 16 1.1 pts A portfolio has a beta of 1.32 and an actual return of 12.6%. The risk-free rate is 4.5% and the market risk premium is 7%. What is Jensen's alpha of the portfolio? -1.76% 0-135% -2013 -1 14%

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