Suppose there are two securities A & B$.$ Security A has a beta of $1\mathrm{.}0$ and an expected return of $12\%$ while Security B has a beta of $0\mathrm{.}75$ and an expected return of$11\%.$If the risk$-$free rate is $6\%,$ find if arbitrage opportunity exists and explain how an investor can take advantage of it$.$Your strategy should include details about which asset you should buy and sell to form a portfolio$\mathrm{.}2.$ If the risk$-$free rate is $2\%,$ the expected market return is $8\%,$ and our stock has a beta of $1\mathrm{.}2,$ we can use CAPM to calculate the stock's expected return$3.$ An investor uses Arbitrage Pricing Theory $($APT$)$ to estimate the required return for a company. If there are $3$ relevant factors in the model: Market risk premium F$1$;Growth rate of real GDP $($Gross Domestic Product$)$ relative to the risk$-$free