i cannot figure out how to get 16.25

estion 15 a yet swered Consider the multifactor APT with two factors. Portfolio A has a beta of .5 on factor 1 and a beta of 1.25 on factor 2. The risk premiums on the factor 1 and 2 portfolios are 1% and 7%, respectively. The risk- free rate of return is 7%. The expected return on portfolio A is no arbitrage opportunities arked out of 20 exist. Select one: O a. 13.5% O b. 15% ER = Rf +($.,*F,) + (B2 * F2) 7% +1.5+. 1) + (1.25*7) .05 t 8.75 c. 16.25% O d. 23% Clear my choice PBA = 1.25 on factor 2 PBA=.5 on factor 1 Risk 1% ,7% rf 7% factor 5/6