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Given the following three assets, determine whether an arbitrage opportunity exists Eccording to the arbitrage pricing theory. If so, please calculate the excess return of

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Given the following three assets, determine whether an arbitrage opportunity exists Eccording to the arbitrage pricing theory. If so, please calculate the excess return of the arbitrage portfolio; if there is no arbitrage opportunity, please enter zero as your answer. (Assume the weight in A is standardized to 1 or -1 depending on the position) Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35. Asset E() (%) Beta Weights A 9 1.0 B 14 1.3 C 3 0.0 The arbitrage excess return is percent. Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35. Joy's portfolio has a standard deviation of 22.9 percent. It is composed of the tangency portfolio with an expected rate of return of 10.0 percent and a standard deviation of 30.7 percent and a T-bill that pays a rate of return of 2 percent. Her portfolio's Sharpe ratio is Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35. Given the following three assets, determine whether an arbitrage opportunity exists Eccording to the arbitrage pricing theory. If so, please calculate the excess return of the arbitrage portfolio; if there is no arbitrage opportunity, please enter zero as your answer. (Assume the weight in A is standardized to 1 or -1 depending on the position) Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35. Asset E() (%) Beta Weights A 9 1.0 B 14 1.3 C 3 0.0 The arbitrage excess return is percent. Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35. Joy's portfolio has a standard deviation of 22.9 percent. It is composed of the tangency portfolio with an expected rate of return of 10.0 percent and a standard deviation of 30.7 percent and a T-bill that pays a rate of return of 2 percent. Her portfolio's Sharpe ratio is Answers must be entered with 2 decimal places and no dollar signs, e.g. 6 as 6.00; 32.346 as 32.35

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