Question: Consider the multifactor model APT with two factors Portfolio A has a beta of 0.75 on factor 1 and a beta of 125 on factor

Consider the multifactor model APT with two factors Portfolio A has a beta of 0.75 on factor 1 and a beta of 125 on factor 2. The risk premiums on the factor-1 and factor-2 portfolios are 1% and 7%, respectively. The risk-free rate of return is 7%. The expected return on portfolio Ais Lif no arbitrage opportunities exist Select one: O A 15.0% OB 13.5% OC 23.0% OD 16.5%

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