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4 p Consider the following two factor APT model E(R) = 10 +1161 +12b2 O B1 is the expected return on the asset with zero

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4 p Consider the following two factor APT model E(R) = 10 +1161 +12b2 O B1 is the expected return on the asset with zero systematic risk O ?1 is the risk premium O #1 is the pricing relationship between the risk premium and the asset OR1 is the expected return on asset 1

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