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Suppose there are two assets under the single-factor model, the model estimations are shown in the following table. b Asset 1 0.10 2 0 Asset

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Suppose there are two assets under the single-factor model, the model estimations are shown in the following table. b Asset 1 0.10 2 0 Asset 2 0.08 1 0 a e It is also known that the risk free rate is 4%. Identify whether there is any arbitrage opportunities. If yes, what is the arbitrage strategy. If no, explain why

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