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Consider the following data for a one-factor economy. All portfolios are well diversified. Suppose that portfolio B is well diversified with a beta of 0.7

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Consider the following data for a one-factor economy. All portfolios are well diversified. Suppose that portfolio B is well diversified with a beta of 0.7 and expected return of 9 percent. Would an arbitrage opportunity exist? If so, what would be the arbitrage strategy

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