angelynb1686 angelynb1686
  • 20-12-2022
  • Business
contestada

consider the multifactor apt with two factors. stock a has an expected return of 15.70%, a beta of 1.2 on factor 1, and a beta of 0.6 on factor 2. the risk premium on the factor 1 portfolio is 4.00%. the risk-free rate of return is 6.40%. what is the risk premium on factor 2 if no arbitrage opportunities exist?

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