ASAP Pls

Consider the multifactor APT with two factors. The risk premiums on factor 1 and factor 2 portfolios are 5% and 6%, respectively. Stock A has a beta of 1.2 on factor 1 , and a beta of 0.7 on factor 2 . The expected return on stock A is 17%. If no arbitrage opportunities exist, what is the risk-free rate of return? 6.8% 12.7% 2.3% 20.1% How do you construct a portfolio with positive HML beta (what type of stocks do you need to buy or sell)? You over-weight (buy more) growth stocks and under-weight (buy less) value stocks. You over-weight (buy more) large stocks and under-weight (buy less) small stocks. You over-weight (buy more) value stocks and under-weight (buy less) growth stocks. You over-weight (buy more) small stocks and under-weight (buy less) large stocks. None of the above