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Consider the multifactor APT with two factors. Portfolio A has an expected return of 0.164, a beta of 1.4 on factor 1 and a

Consider the multifactor APT with two factors. Portfolio A has an expected return of 0.164, a beta of 1.4 on factor 1 and a beta of 0.8 on factor 2. The risk premium on the factor 1 portfolio is 0.03. The risk-free rate of return is 0.06. What is the risk- premium on factor 2 if no arbitrage opportunities exist?

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