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A multifactor APT with two factors. Stock VWY has an expected return of 16.6%, a beta of 1.45 on factor 1 and a beta of

A multifactor APT with two factors. Stock VWY has an expected return of 16.6%, a beta of 1.45 on factor 1 and a beta of .86 on factor 2. The risk premium on factor 1 portfolio is 3.2% the risk-free rate of return is 5%. What is the risk premium o factor 2 if no arbitrage opportunities exist?

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