Question: Consider the multifactor APT The risk remiums on the factor 1 and factor 2 portfolios are 5 and 6%, respectively. The risk tree rate of

Consider the multifactor APT The risk remiums on the factor 1 and factor 2 portfolios are 5 and 6%, respectively. The risk tree rate of retum Stock A has an expected return of and a buta on factor 1 of 0.8. Stock A has a beta on factor 2 of 1.70 133 1.50 2.00

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