Question: Consider the multifactor model APT with three factors, Portfolio A has a bets of 0.5 on factor 1, a beta of 1.15 on factor 2,

Consider the multifactor model APT with three factors, Portfolio A has a bets of 0.5 on factor 1, a beta of 1.15 on factor 2, and a bets of 1.25 on factor. The risk premium on the factor 1, factor 2 and factor 3 are 34, 54, and 2%, respectively. The riskfree rate of return is 4. The expected return on portfolio Ais no arbitrage opportunities exist. Excel O 16.5% 14.85 23.0% 13.75

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