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Consider the multifactor APT with two factors. Portfolio A has a beta of 0.4 on factor 1 and a beta of 1.18 on factor 2.

Consider the multifactor APT with two factors. Portfolio A has a beta of 0.4 on factor 1 and a beta of 1.18 on factor 2. The risk premiums on the factor 1 and 2 portfolios are 2% and 8%, respectively. The risk-free rate of return is 4%. The expected return on portfolio A is if no arbitrage opportunities exist. (Round final answer to 2 decimal places) O 19.25% O 14.24% O 13.50%) O 15.00%

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