Question 7 1 pts Consider a single factor model of returns where the residuals (epsilons) are uncorrelated across assets. Suppose the factor is the market and suppose you can find a large number of stocks with positive alpha. How do you arbitrage this? You need to select all correct statements: Pick a positive-alpha stock and then climinatdodiosyncratic risk by going long in the stock and short in the market Pick a positive alpha stock and then eliminate idiosyncratic risk by going short in the stock and long in the market Eliminate idiosyncratic risk by forming a large diversified portfolio of the positive alpha stocks Eliminate market risk by forming a large diversihed portfolio of the positive-alpha stocks Eliminate market risk by going long in the diversified portfolio and short in the market Eliminate market risk by going short in the diversified portfolio and long in he market