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- Suppose I have the following pricing model: Rp=E[Rp]+F - I have two assets. Asset A has a A=0.5 and Asset B has a B=
- Suppose I have the following pricing model: Rp=E[Rp]+F - I have two assets. Asset A has a A=0.5 and Asset B has a B= 0.25. Asset A has an expected return of 8%. Asset B has an expected return of 6%. - How would I create an arbitrage opportunity if one exists
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