Question: Consider the multifactor APT with two factors. Stock A has an expected return of 14%, a beta of 156 on factor 1, and a bit

Consider the multifactor APT with two factors. Stock A has an expected return of 14%, a beta of 156 on factor 1, and a bit of 7 on factor 2. The risk premium on the actor portfolio Th risk-free rate of return is 45%. What is the risk premium on factor 2 if no arbitrage opportunities exist? Excel 6.989 3.78% 8.14% 7.7546

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