The equation of the equilibrium APT plane is: Expected Ri = 8 + 1.5b 1 + 2.0biz Two additional portfolios, P and Q, are observed with the following properties: Expected Rp = 13 bP1 = 2 bp2 = 0 Expected Ra = 11 bp1 = 1 bp2 = 1 Illustrate the arbitrage opportunity that would exist. (10 marks) The equation of the equilibrium APT plane is: Expected Ri = 8 + 1.5b 1 + 2.0biz Two additional portfolios, P and Q, are observed with the following properties: Expected Rp = 13 bP1 = 2 bp2 = 0 Expected Ra = 11 bp1 = 1 bp2 = 1 Illustrate the arbitrage opportunity that would exist. (10 marks)