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Question 3 1 pts Consider the multi-factor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are 7% and

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Question 3 1 pts Consider the multi-factor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are 7% and 9%, respectively. Stock A has a beta of 1.2 on factor 1, and a beta of 1.1 on factor 2. The expected return on stock A is 21%. If no arbitrage opportunities exist, then what is the risk-free rate? Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321

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