Consider a single-factor APT, and two well-diversified portfolios: Well-diversified Portfolios E(r) B 16% A B 12% The risk-free rate of return is 3%. If you wanted to take advantage of an arbitrage opportunity, your trading strategy could be? O a. O b. 1 O c. O d. 0.4 Short 0.4 portfolio A, Short 0.6 risk-free asset, Long 1 portfolio B Long 0.4 portfolio A, Short 1 risk-free asset, Long 0.6 portfolio B Long 0.4 portfolio A, Long 0.6 risk-free asset, Short 1 portfolio B Short 1 portfolio A, Long 0.4 risk-free asset, Long 0.6 portfolio B A

Consider a single-factor APT, and two well-diversified portfolios: The risk-free rate of return is \3. If you wanted to take advantage of an arbitrage opportunity, your trading strategy could be? a. Short 0.4 portfolio \\( A \\), Short 0.6 risk-free asset, Long 1 portfolio \\( B \\) b. Long 0.4 portfolio \\( A \\), Short 1 risk-free asset, Long 0.6 portfolio \\( B \\) c. Long 0.4 portfolio A, Long 0.6 risk-free asset, Short 1 portfolio \\( B \\) d. Short 1 portfolio A, Long 0.4 risk-free asset, Long 0.6 portfolio \\( B \\)