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!!!HURRY!!! Can anyone solve and explain this quickly ? Thanks. B= 1.0 / 0.65 / 20 % 7. There are two independent economic factors M1

!!!HURRY!!!

Can anyone solve and explain this quickly ? Thanks.

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B= 1.0 / 0.65 / 20 %

7. There are two independent economic factors M1 and M2. The risk-free rate is 5% and all stocks have independent firm-specific components with a standard deviation of 25%. Portfolios A and B are well diversified. Given the data below which equation provides the correct pricing model? Portfolio Beta on M1 Beta on M2 E[r] AR B 1.5 1.0 1.75 35% 0.65 20

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