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Consider the single factor APT. Portfolio A has a beta of 1.4 and an expected return of 20%. Portfolio B has a beta of .8

Consider the single factor APT. Portfolio A has a beta of 1.4 and an expected return of 20%. Portfolio B has a beta of .8 and an expected return of 16%. The risk-free rate of return is 5%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio __________ and a long position in portfolio

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