Consider the single factor APT. Portfolio A has a beta of 1.6 and an expected return of 19%. Portfolio B has a beta of 0.6 and an expected return of 15%The risk-free rate of return is 10%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio ____ and a long position in portfolio ____.

MULTIPLE CHOICE:

A;A

A;B

B;B

B;A