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Consider a two-factor APT model. A company has a beta of 1.5 on the first factor and 2 on the second factor and an expected
"Consider a two-factor APT model. A company has a beta of 1.5 on the first factor and 2 on the second factor and an expected return of 10%. If the first factor ends up 3% higher than expected, and the second factor ends up 5% higher than expected, what is the firm's revised expected return?" 0 23.50% 0 24.50% O 30% O Not enough data
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