Question: EXPLAIN STEP BY STEP Consider the multifactor APT. There are two independent economic factors, F1 and F2. The risk-free rate of return is 6%. The

EXPLAIN STEP BY STEP Consider the multifactor APT. There are two independentEXPLAIN STEP BY STEP

Consider the multifactor APT. There are two independent economic factors, F1 and F2. The risk-free rate of return is 6%. The following information is available about two well-diversified portfolios: Assuming no arbitrage opportunities exist, the risk premium on the factor F1 portfolio should be: Your answer must be in percentage with two decimal points

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