Suppose that a two$-$factor $($Factor X and Factor Y$)$ model describes the return generating processes of all securities in the market and that the corresponding APT model correctly calculates the expected returns of the three well$-$diversified portfolios A$,$ B$,$ and C with the following characteristics:

Portfolio

Expected return

Sensitivity to Factor X

Sensitivity to Factor Y

A

$15\%$

$1\mathrm{.}5$

$0\mathrm{.}5$

B

$14\%$

$1$

$1$

C

$4\%$

$0$

$0$

D

$?$

$2$

$1$

What is Portfolio D$$s APT$-$consistent expected return?

Suppose that a two$-$factor $($Factor $x$ and Factor $Y)$ model describes the return generating processes of all securities in the market and that the corresponding APT model correctly calculates the expected returns of the three well$-$diversified portfolios $A,B,$ and $C$ with the following characteristics:

$\backslash$table$[[$Portfolio$,$Expected return,Sensitivity to Factor x$,\backslash$table$[[$Sensitivity to Factor$],[$Y$]]],[$A$,15\%,1\mathrm{.}5,0\mathrm{.}5],[$B$,14\%,1,1],[$C$,4\%,0,0],[$D$,?,2,1]]$

What is Portfolio D$\text{'}$s APT$-$consistent expected return?