Question: Consider the single factor APT. Portfolio A has a beta of 1.4 and an expected return of 25%. Portfolio B has a beta of 9

Consider the single factor APT. Portfolio A has a beta of 1.4 and an expected return of 25%. Portfolio B has a beta of 9 and an expected return of 21%. The risk-free rate of return is 5%. If you wanted to take advantage of an arbitrage and a long opportunity, you should take a short position in portfolio position in portfolio Multiple Choice O AA O A;B O B;B B;A 23 of Prey

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