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Given the following well diversified portfolios, what is the arbitrage profit on a $100 (long or possibly short) position in portfolio 1? portfolio Beta 1

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Given the following well diversified portfolios, what is the arbitrage profit on a $100 (long or possibly short) position in portfolio 1? portfolio Beta 1 10.6 Expected ROR 10% 12% 14% 2 10.8 3 1.2 Multiple Choice O $1.25 O $0.05 o $1.00 $0.50 none of the above

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