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Consider the multifactor APT. There are two independent economic factors, F1 and F2. The following information is available about two well-diversified portfolios with risk free

Consider the multifactor APT. There are two independent economic factors, F1 and F2. The following information is available about two well-diversified portfolios with risk free rate of 5%.

Portfolio

on F1

on F2

Expected Return

A

2.0

1.5

13%

B

1.0

1.0

10%

What's the risk premium of factor portfolio 1?

Group of answer choices

2%

6%

1%

4%

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