Question: Given the following data for a stock: risk-free rate = 2%; factor-1 beta = 1.9; factor-2 beta = -0.6; factor-1 risk- premium = 11%; factor-2

Given the following data for a stock: risk-free rate = 2%; factor-1 beta = 1.9; factor-2 beta = -0.6; factor-1 risk- premium = 11%; factor-2 risk premium = 9%. Calculate the expected rate of return on the stock using the two- factor APT model 15.1% 17.5% 14.5% 16.3%

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