Question: QUESTION 9 If the APT has two factors. The expected returns on the first and second factors are 12% and 10%, respectively. Stock ACM has

QUESTION 9 If the APT has two factors. The expected returns

QUESTION 9 If the APT has two factors. The expected returns on the first and second factors are 12% and 10%, respectively. Stock ACM has a beta of 1.4 on factor 1 and a beta of 0.6 on factor 2. The expected return on ACM is 16.3%. Based on the APT, what is the risk-free rate? A. 5.4% B. 7.2% O C. 6.5% D.8.2%

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