Consider the following data for a one-factor economy. All portfolios are well diversified.

Portfolio E(r) Beta

A 10% 1.0

F 4% 0

Suppose another portfolio E is well diversifed with a beta of 2/3 and expected return of 9%.

Construct an arbitrage strategy by investing $1 in the long position and $1 in the short position. What is the profit from this arbitrage strategy?

Your answer should be in dollars and accurate to the hundredth. For example, if the answer is $0.126, then you should input 0.13.