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Consider the multifactor model APT with two factors. Portfolio A has a beta of 0.76 on factor and a beta of 1.25 on factor 2.

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Consider the multifactor model APT with two factors. Portfolio A has a beta of 0.76 on factor and a beta of 1.25 on factor 2. The risk premiums on the factor-1 and factor-2 portfolios are 1% and 7%, respectively. The risk-free rate of return is 7%. The expected return on portfolio Ais if no arbitrage opportunities exist. Select one: A. 15.0% B. 23.0% C. 16.5% D.13.5%

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