Question: 6.12. Assume the factor model in exercise 6.11 applies again. If there exists an additional asset with the following factor equation r4 .08

6.12. Assume the factor model in exercise 6.11 applies again. If there exists an additional asset with the following factor equation r4 .08 1˜F 1 0˜F2 does an arbitrage opportunity exist? If so, describe how you would take advantage of it.

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