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A multifactor APT has two factors. Alma Plc has an expected return of 20.00%, a beta of 1.5 on factor 1, and a beta of
A multifactor APT has two factors. Alma Plc has an expected return of 20.00%, a beta of 1.5 on factor 1, and a beta of .9 on factor 2. Padma Plc has an expected return of 15%, a beta of 0.9 on factor 1 and a beta of 1.5 on factor 2. Find the equation for the APT. The risk-free rate of return is 10%.
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