Consider a single factor APT. We have the following information about the portfolio A, portfolio B, and risk-free rate of return. Please answer the following questions.

Portfolio	beta	R	Rf
A	2.3	28%	9%
B	1.9	20%	9%

Choose all correct answers. Please note that each incorrect answer will reduce the score by 10%

	1.	The arbitrage profit will be 4.70%
	2.	The ratio of risk premium to beta for portfolio B is 7.67%
	3.	The arbitrage profit is 0.5%
	4.	The ratio of risk premium to beta for portfolio A is 8.26%
	5.	The ratio of risk premium to beta for portfolio A is 9%
	6.	The arbitrage profit is 5%
	7.	For portfolio A , the ratio of risk premium to beta is 10%
	8.	The arbitrage strategy is to short portfolio B and use the proceeds to take a long position (75%) in A and (25%) in risk free asset
	9.	The ratio of risk premium to beta for portfolio B is 8.67%
	10.	The ratio of risk premium to beta for portfolio B is 0.09
	11.	The ratio of risk premium to beta for portfolio A is 10%
	12.	The arbitrage strategy: is to short portfolio A and B and use the proceeds to take a long position in risk free asset
	13.	The arbitrage strategy is to short portfolio B and use the proceeds to take a long position (82.61%) in A and (17.39%) in risk free asset
	14.	The ratio of risk premium to beta for portfolio A is 5.79%
	15.	The arbitrage strategy it to short portfolio A and use the proceeds to take a long position (50%) in A and (50%) in risk free asset