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Consider the multifactor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolio are 4% and 6% respectively. Stock W

Consider the multifactor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolio are 4% and 6% respectively. Stock W has a beta of 1.2 on factor 1 and beta of 0.7 on factor 2. The expected rate of return on stock S is 16% what is the risk-free rate of return?

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