Question 16 2 pts The Capital Asset Pricing Model: Would highlight arbitrage opportunities, which you can find good returns with no risk Requires you to predict future dividends to calculate required return Is mostly used to price bonds because they are more sensitive to interest rates O Assumes market are efficient Question 17 3 pts Which portfolio generated the highest Jensen alpha? Portfolio A Portfolio B Market Return 15% 20% 10% Beta 1 1.25 1 Risk Free Rate 4% Portfolio A Portfolio B