Question 2 a. The following three assets exist in the economy: Rx=0.2+2F1F2=5%Ry=0.16+4F1+2F2=7%Rz=0.1+1F1+F2=9% The % values are the current market returns. The return on stock M is known to follow the factor model Rm=0.5F1+1.5F2. It is currently traded at the a return of 10%. Find out if there is an arbitrage and what should the profiteering strategy. Question 2 a. The following three assets exist in the economy: Rx=0.2+2F1F2=5%Ry=0.16+4F1+2F2=7%Rz=0.1+1F1+F2=9% The % values are the current market returns. The return on stock M is known to follow the factor model Rm=0.5F1+1.5F2. It is currently traded at the a return of 10%. Find out if there is an arbitrage and what should the profiteering strategy