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In APT (Arbitrage Pricing Theory) multi-factors model, we assume there are two risk factors, accidental changed on inflation and GDP. We expected both factors would

In APT (Arbitrage Pricing Theory) multi-factors model, we assume there are two risk factors, accidental changed on inflation and GDP. We expected both factors would change 6% and 8% next year, respectively. If a portfolio has the correlation with the two factors are 1=0.5 and 2=0.75, respectively, whats the portfolios total risk premium during the year? A. 7.00% B. 5.50% C. 9.00% D. 6.00%

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