Question: correct Question 14 0/3 pts Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B

correct Question 14 0/3 pts Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of 0.7 and an expected return of 12%. The risk-free rate of return is 8%. If you wanted to take advantage of an arbitrage opportunity you should sell (take a short position in) portfolio and buy (take a long position in) portfolio BA AB There is no arbitrage opportunity AA B

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