Question: Q5(c) Consider a 2-factor APT model. The risk premiums on the factor 1 and factor 2 portfolios are 6% and 4%, respectively. The risk-free rate

Q5(c) Consider a 2-factor APT model. The risk premiums on the

Q5(c) Consider a 2-factor APT model. The risk premiums on the factor 1 and factor 2 portfolios are 6% and 4%, respectively. The risk-free rate of return is 4%. Stock A has an expected return of 16% and a beta on factor 1 of 1.3. What is Stock A's beta on factor 2

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