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Consider we have the following information about a stock: Factor-1 beta = 1.5; Factor 2 beta = 0.5; Factor-1 risk-premium = 8%; Factor-2 risk-premium =
Consider we have the following information about a stock: Factor-1 beta = 1.5; Factor 2 beta = 0.5; Factor-1 risk-premium = 8%; Factor-2 risk-premium = 2%. Given risk-free rate = 4%, calculate the expected rate of return on the stock using a two-factor APT model. Select one: O a 17% Ob 10% . 14% od 13% G
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