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The table below contains key information for stock ZYX. Stock ZYX 0.165 Expected return Factor 1 beta 1.32 Factor 2 beta 0.86 Consider a multifactor

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The table below contains key information for stock ZYX. Stock ZYX 0.165 Expected return Factor 1 beta 1.32 Factor 2 beta 0.86 Consider a multifactor APT model with two factors. Assume that the risk premium on the factor 1 portfolio is 3.2% and that the risk-free rate of return is 5%. What is the risk-premium on factor 2 if no arbitrage opportunities exist? O 9.7% O 14.3% O 8.5% O 10.8% O 7.3%

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