As a financial analyst at Lotus Financial, you are applying a single factor APT model to analyze an arbitrage strategy. You have collected the following information for Portfolio A and portfolio B. Portfolio 00 Beta 3 2.7 r 28% 20% re 4% 4% Please choose all correct answers. Please note that each incorrect answer will reduce the score by 10%. The arbitrage strategy is to short portfolio B and use the proceeds to take a long position (90%) in A and a (10%) in risk free asset b. The ratio of risk premium to beta for portfolio B is equal to the ratio of risk premium to beta for portfolio A Oc The ratio of risk premium to beta for portfolio B is higher than the ratio of risk premium to beta for portfolio A Od For portfolio A, the ratio of risk premium to beta is 14% The arbitrage profit is 4% The ratio of risk premium to beta for portfolio A is 10% The arbitrage profit is 5.6% Oh The ratio of risk premium to beta for portfolio A is higher than the ratio of risk premium to beta for portfolio The arbitrage strategy is to short portfolio A and B and use the proceeds to take a long position in risk free i. asset The arbitrage strategy is to short portfolio A and use the proceeds to take a long position (80%) in A and OJ. (20%) in risk free asset