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Consider the multifactor APT. There are two independent economic factors, F1 and F2. The risk-free rate of return is 6%. The following information is available
Consider the multifactor APT. There are two independent economic factors, F1 and F2. The risk-free rate of return is 6%. The following information is available about two well-diversified portfolios: Assuming no arbitrage opportunities exist, the risk premium on the factor F2 portfolio should be 3% 5% 4% 6% 2%
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