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Consider the following data for a single-index economy. All portfolios are well diversifie3d. Suppose that another portfolio E is well diversified with a beta of
Consider the following data for a single-index economy. All portfolios are well diversifie3d. Suppose that another portfolio E is well diversified with a beta of 2/3 and an expected return of 9%. Is there an arbitrage opportunity? If so, what is it
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