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5) A portfolio A has an expected return of 16% and Beta of 1.23. Another portfolio B has an expected return of 7.5% and the

5) A portfolio A has an expected return of 16% and Beta of 1.23. Another portfolio B has an expected return of 7.5% and the beta of 0.1. If another portfolio of beta 0.75 and expected return of 11% exists, suggest if an arbitrage opportunity arises or not.

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