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

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

Consider the multifactor model APT with three factors Portfolio A has a beta of 0.5 on factor 1, a bets of 1.15 on factor and 15 octor Thermhet and factor 3 are 3,5% and 2%, respectively. The risk free rate of return is on. The expected return on portfolio new coperture Excel 16.5% 14.85 23.0W 13.759 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 3%, 54, and 2%, respectively. The risk free rate of return is 4. The expected return on portfolio no arbitragt opportunities exist. 16.5% 14,85% 23.046 0 13.75

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