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Consider two well-diversified portfolios X and Y. Portfolio X has an expected return of 14% and a beta of 1.00 while Portfolio Y has an

Consider two well-diversified portfolios X and Y. Portfolio X has an expected return of 14% and a beta of 1.00 while Portfolio Y has an expected return of 9.5%and a beta of 0.25. The risk-free rate is 8%

,i.is there an arbitrage opportunity? Explain why or why nor?

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