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premium Consider the multifactor risk return model w/ two factors. stock A has expected return of 17.6% a beta of 1.45 on factor a, and

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premium Consider the multifactor risk return model w/ two factors. stock A has expected return of 17.6% a beta of 1.45 on factor a, and beta of .86 factor a. The risk the factor 1 is 3.2% o The risk fretfolio of return is sob. What is the risk - premium on factor a if Arbitrage opportunities A 306 4% C. 9.2606 D. D 7.75% exist

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