I 'll rate the answer please

Consider the following information on the estimated factor loadings for a two-factor APT model for three well-diversified portfolios. Betal Betal ELL") Port A 1.5 .3 .19 Port B .5 .5 .13 Port C .2 1.0 .14 The risk-free rate is 1% per annum. Beta] is the factor loading on Factor 1 and Beta?! is the factor loading for factor 2; Etr) denotes the expected return. Assume there are no transactions costs and that you can short the portfolios and borrow and lend at the risk-free rate (you can obviously go long in the portfolios too). A. Is there an arbitrage opportunity with these three well-diversified portfolios {and the riskfrec rate}? For this question, justify your answer by showing the three are not priced correctly relative to each other. (9 points)