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Consider the multifactor APT with two factors. Stock A has an expected return of 20.20%, a beta of 1.2 on factor 1, and a beta

Consider the multifactor APT with two factors. Stock A has an expected return of 20.20%, a beta of 1.2 on factor 1, and a beta of 0.6 on factor 2. The risk premium on the factor 1 portfolio is 4.00%. The risk-free rate of return is 8.20%.

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