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Suppose your investment firm uses a single-factor model to evaluate assets. Consider the following data for portfolios A, B, and C: Portfolio Expected return Factor

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Suppose your investment firm uses a single-factor model to evaluate assets. Consider the following data for portfolios A, B, and C: Portfolio Expected return Factor sensitivity A 10% 1.0 B 20% 2.0 13% 1.5 Calculate the arbitrage opportunity from the data provided

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