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Consider the multi-factor model with two factors. Portfolio A has a beta of 5 on factor 1 and a beta of 0.7 on factor 2.

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Consider the multi-factor model with two factors. Portfolio A has a beta of 5 on factor 1 and a beta of 0.7 on factor 2. The risk premiums on the factors 1 and 2 portfolios are 1.2% and 9% respectively. The risk-free rate of return is 7%. The expected return on portfolio A is

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