Question: Suppose the APT has two factors. The expected returns on the first and second factors are 1 2 % and 1 0 % , respectively.
Suppose the APT has two factors. The expected returns on the first and second factors are and respectively. Stock ACM has a beta of on factor and a beta of on factor The expected return on ACM is Based on the APT, what is the riskfree rate?
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