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Question 3 34 points As a financial analyst at Lotus Financial you are applying a single factor APT model to analyze an arbitrage strategy You

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Question 3 34 points As a financial analyst at Lotus Financial you are applying a single factor APT model to analyze an arbitrage strategy You have collected the following information for Portfolio A and portfolio B. Portfolio B Beta 3 255 28% 20% rf 4% as there an arbitrage opportunity? sample answer Yes or No) bjThe arbitrage strategy requires taking a long position of what percentage in portfolio A? What is the arbitrage profit in percentage

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