18. JOOL stock has beta factor loads of 2 and -0.5 respectively. At the same time the stock is forecasted by your linear model to earn 10% and you know the risk-free rate to be 1%. Given that the first risk factor has a premia of 5%, what must be the premium on the second risk factor? You may assume all rates are annual. A) Cannot be computed with the information provided B) -2% C) -1% D) 1% E) 2%

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