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We have to find out a profitable Arbitrage strategy. 2. You are asked to analyze Portfolio X. You collect the following data: b. Your research

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We have to find out a profitable Arbitrage strategy.

2. You are asked to analyze Portfolio X. You collect the following data: b. Your research department is convinced the actual forward-looking return for Portfolkio X is 9%. Using that expectation combined with your answer in part a, construct a profitable arbtrage that combines Portfolio X with (i) the Quality Factor ETF, (ii) the Market Portfolio, and (iii) Treasury Bills

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