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What rates of return rational investors using APT model would demand on security P and G given the following information? Portfolio Portfolio Return Correlation with

What rates of return rational investors using APT model would demand on security P and G given the following information?

Portfolio

Portfolio Return

Correlation with

Factor 1

Factor 2

A

13%

0.29

0.93

B

22%

0.78

0.53

C

9%

0.18

0.15

D

18%

0.57

0.82

E

1%

0.00

0.11

F

3%

0.00

0.00

Z

11%

0.91

0.00

Security

Beta

Beta

P

1.19

.75

G

1.59

1.11

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