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Erage strategy c. Now suppose that portfolio P is not well-diversified so that 7,19% +1.2M + where ep is the unexpected firm-specific risk for the

Erage strategy c. Now suppose that portfolio P is not well-diversified so that 7,19% +1.2M + where ep is the unexpected firm-specific risk for the portfolio P. Does an arbitrage opportunity exist in this market? Why? If so, construct an arbitrage strategy

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